How to earn interest on crypto with Gemini Earn

Gemini Earn lets users earn interest on crypto like USDC, BTC, and ETH by lending to institutional borrowers, with rates varying monthly and no fees charged.

Aug 08, 2025 at 09:42 am

Understanding Gemini Earn and Its Purpose

Gemini Earn is a financial service offered by Gemini, a regulated cryptocurrency exchange platform founded by the Winklevoss twins. The program allows users to earn interest on their cryptocurrency holdings by lending their digital assets to institutional borrowers through Gemini’s network of creditworthy lending partners. Unlike traditional savings accounts, which rely on banks to manage funds, Gemini Earn operates in the decentralized finance (DeFi) adjacent space, though it functions through a centralized custodial model.

The interest generated comes from borrowers who use the deposited crypto as collateral for loans. These borrowers are typically institutional entities such as hedge funds, trading firms, or market makers. The assets deposited into Earn are not staked on a blockchain but are lent out under contractual agreements. This distinction is important because it affects risk profiles and regulatory oversight. All interest payments are denominated in the same cryptocurrency deposited—meaning if you deposit USDC, you earn interest in USDC.

Gemini does not charge fees for using the Earn program. However, interest rates are variable and subject to change based on market demand, liquidity needs, and macroeconomic factors. Rates are updated monthly, and users receive interest payouts on a monthly basis, typically within the first five days of the new month.

Supported Cryptocurrencies and Interest Rates

Gemini Earn supports a select range of cryptocurrencies, with interest rates varying by asset. The platform prioritizes stablecoins and select high-demand digital assets to minimize volatility risk for both lenders and borrowers. As of the latest update, the following assets are eligible:

• USDC (USD Coin) – One of the most popular stablecoins, pegged 1:1 to the U.S. dollar. Interest rates for USDC typically range between 3% to 8% APY, depending on market conditions.
• DAI – A decentralized stablecoin backed by crypto collateral. Rates for DAI are often competitive with USDC.
• BTC (Bitcoin) – The original cryptocurrency. Interest rates for BTC are generally lower than stablecoins, usually between 1% to 2% APY, due to higher volatility and custody risks.
• ETH (Ethereum) – The second-largest cryptocurrency by market cap. ETH rates are similar to BTC, fluctuating around 1% to 3% APY.
• GUSD (Gemini Dollar) – Gemini’s own regulated stablecoin. Interest rates on GUSD are comparable to USDC.

Interest rates are not guaranteed and can change without prior notice. Users can view current rates directly within the Gemini app or website under the Earn section. It’s essential to monitor these rates regularly, as they reflect real-time supply and demand dynamics in the crypto lending market.

How to Deposit Crypto into Gemini Earn

To begin earning interest, users must first deposit eligible cryptocurrencies into the Earn program. The process is straightforward but requires careful attention to detail to avoid errors. Follow these steps:

• Log in to your Gemini account via the web platform or mobile app.
• Navigate to the “Earn” tab located in the main menu.
• Select the cryptocurrency you wish to deposit from your Gemini wallet.
• Click “Start Earning” next to the chosen asset.
• Enter the amount you want to deposit. You can choose to deposit the full balance or a partial amount.
• Review the details, including the current APY and compounding frequency.
• Confirm the transaction using your chosen authentication method (e.g., 2FA).

Once confirmed, the deposit is processed immediately. The crypto is moved from your wallet into the Earn program, and interest begins accruing the same day. There is no minimum deposit requirement, allowing users with small balances to participate. However, due to the way interest is calculated and distributed monthly, very small balances may yield negligible returns.

Withdrawing Funds from Gemini Earn

Withdrawing funds from Gemini Earn is designed to be flexible and user-friendly. Unlike some crypto lending platforms with lock-up periods, Gemini allows users to withdraw their assets at any time without penalties. The process is simple:

• Access the Earn section in your Gemini account.
• Locate the asset you wish to withdraw.
• Click “Withdraw” next to the balance.
• Enter the amount to withdraw or select “Withdraw All.”
• Confirm the withdrawal using your security credentials.

Withdrawals are processed instantly, and the crypto is returned to your Gemini wallet within seconds. Interest accrues up to the moment of withdrawal, meaning you retain all earned interest even if you remove funds mid-cycle. However, interest is only paid out monthly, so any accrued but unpaid interest will be forfeited if you withdraw before the payout date unless it has already been credited.

It’s important to note that while withdrawals are fast, transferring the withdrawn funds to an external wallet may incur network fees and require additional confirmations depending on blockchain congestion.

Risks and Security Considerations

While Gemini Earn offers a convenient way to earn passive income, it is not without risk. The primary concern is credit risk—the possibility that borrowers fail to repay their loans. Although Gemini conducts due diligence on its lending partners, defaults can still occur. In such cases, there is no insurance or FDIC protection covering the deposited crypto.

Another consideration is regulatory risk. In 2022, the U.S. Securities and Exchange Commission (SEC) raised concerns about whether certain Earn products constituted unregistered securities offerings. As a result, Gemini paused some offerings and adjusted its model to comply with evolving regulations. Users should stay informed about legal developments that may impact program availability.

On the security front, Gemini employs SOC 2 Type II compliance, cold storage for the majority of assets, and regular third-party audits. However, because funds in Earn are lent out, they are not held in user-controlled wallets, increasing counterparty risk compared to self-custody solutions.

Frequently Asked Questions

Can I earn interest on multiple cryptocurrencies at the same time?

Yes. You can deposit different eligible cryptocurrencies into Gemini Earn simultaneously. Each asset will earn interest at its respective APY, and payouts are calculated independently per asset.

Is there a limit to how much crypto I can deposit into Earn?

There is no set upper limit on deposits. However, Gemini may impose temporary caps during periods of high demand or market volatility. These limits, if applied, are displayed in the app during the deposit process.

When is interest paid out, and how is it calculated?

Interest is paid monthly, typically within the first five days of the month, for the prior month’s holdings. It is calculated daily based on your average balance in the Earn program and compounded monthly.

What happens to my crypto if Gemini shuts down?

In the event of Gemini’s insolvency, your assets may be subject to bankruptcy proceedings. While Gemini claims client assets are segregated, there is no guarantee of full recovery. Holding crypto in self-custody wallets offers greater control in such scenarios.