Introducing Stablecoin Earn: A Wallet-Native Product That Lets Users Put Idle Stablecoins to Work

In the burgeoning landscape of decentralized finance (DeFi), stablecoins serve as crucial components, providing liquidity and facilitating new financial products. However, despite the potential, billions in stablecoins often remain idle, largely confined to being a medium of exchange and store of value, with few — and often complex — options available to generate yield.

This inactivity presents a missed opportunity to activate liquidity further and support onchain projects, especially considering the rapid growth of stablecoins. In September 2023 alone, Chainalysis data revealed that stablecoin activity reached an all-time high, highlighting the increasing role of these assets in onchain transactions.

Moreover, while DeFi has matured, moving beyond yield farming hype into more structured, risk-aware strategies, there is still a gap in providing accessible and engaging yield-generating products to a broader user base.

Against this backdrop, Trust Wallet, a non-custodial cryptocurrency wallet, is aiming to change the dynamic by offering a new feature called Stablecoin Earn. This wallet-native product enables users to put their idle stablecoins to use within the Trust Wallet app itself.

To delve deeper into the macro trends that shaped Stablecoin Earn’s development, the role of core partners like Kiln and Morpho, and the next steps in expanding access to this product, Cointelegraph interviewed Eowyn Chen, CEO of Trust Wallet.

Coins supported: USDT, USDC, DAI and USDA

Available protocols: Kiln and Morpho

Supported chains: Commencing withoptimism and planning to expand further

Highlighting the vast sums of stablecoins that could be put to better use, Chen explained that last September alone, Trust Wallet saw nearly 10 billion in USDT held by users onchain remaining largely untouched for six months, despite somewhat bullish market conditions.

For its "holder-ish" users who prefer to manage their own crypto, Trust Wallet’s goal is to help them activate those assets and liquidity to support onchain projects.

According to Chen, users are seeking out transparent and secure ways to put those assets to use without giving up control, presenting an opportunity for Trust Wallet to bring a yield-generating experience into the wallet layer, where users already hold their assets and expect a seamless experience. He added that it’s a natural extension of self-custody.

"We're starting with the user problem: onchain stablecoins are often idle, not because people don't want to use them, but because the steps to find and access yield are fragmented, complex and sometimes risky," explained Chen. "So we built Stablecoin Earn to be native to the wallet experience, fully automated and safe, and transparent under the hood."

He further noted that users can access curated protocols, like Morpho and Aave, with just a few steps and retain full visibility into where their funds are deployed. The team prioritized simplicity and trust without compromising user control.

"Introducing Stablecoin Earn on Trust Wallet. 💸Holding $USDT, $USDC, $DAI, or $USDA? Start earning effortlessly at competitive rates.Update your app → “Earn” tab to get started: https://t.co/5gKImpOSszCheck out the thread for more details 🧵: pic.twitter.com/MUiNfHHfk

Delighted to announce the launch of Stablecoin Earn on Trust Wallet! We're making it easier than ever to put your idle stablecoins to work and earn onchain yield, directly within the wallet you know and trust.

This is a natural extension of self-custody, offering more ways to activate liquidity and support the ecosystem. We're kicking things off with two leading protocols: Kiln for staking-based strategies and Morpho for optimized lending, providing a blend of innovation and reliability.

Over the last year, we've seen an incredible evolution in both stablecoins and DeFi. Yet, despite this progress, billions in stablecoins remain largely inactive.

According to Chainalysis, September 2023 saw all-time highs in stablecoin activity, highlighting the role these assets play in onchain transactions. But despite this liquidity and activity, we're still seeing a significant portion of stablecoins held in cold wallets or exchanges, largely untouched.

At the same time, DeFi is maturing, moving beyond yield farming hype into more structured, risk-aware strategies. We're seeing the emergence of specialized protocols offering unique value propositions—in lending, liquidity management, and advanced derivatives.

However, despite these developments, we're not yet seeing optimal participation from the broader user base. Many users are aware of DeFi but haven't yet taken the steps to engage with it personally. They might know about protocols or hear about high APY opportunities, but they face several hurdles:

* Finding and comparing protocols can be time-consuming, and there's not always a clear best option for every user's needs and risk appetite.

* Access