Ledger Now Offers Up To 9.9% APY Passive Income on Stablecoins

Ledger users will be able to earn up to 9.9% APY with the new integration

French hardware cryptocurrency wallet maker Ledger announced the launch of a feature that allows users to generate revenue from stablecoins directly from self-storage mode. The innovation is in collaboration with the infrastructure DeFi platform Kiln, one of the leading crypto platforms for earning passive income.

The new feature will give Ledger device owners the ability to earn passive income ranging from 5% to 9.9% on USDC, USDT, USDS, and DAI stablecoins through various DeFi lending protocols, including Aave, Compound, Morpho, Sky, and Spark. In doing so, users retain full control over their assets.

Now, instead of connecting its Ledger hardware wallet to third-party web3 wallets and using multiple decentralized applications, Kiln removes that complexity and increases security by providing access to DeFi’s returns directly within the companion Ledger Live app, running on both desktops and mobile devices.

Ledger claims that the integration opens up access to DeFi yields in a more user-friendly way, including clear transaction signing, a method in which the signed content of blockchain transactions is presented in a human-readable form and easily verifiable. Users simply enter the amount they want to deposit and select the protocol with the desired annual percentage yield from a drop-down list. The trade-off, however, is that users receive a slightly lower yield than when accessing the protocols directly.

“Ledger is a pioneer in generating yield with prioritized security in the DeFi space,” the company said in a statement.

“More and more users are entering the world of cryptocurrencies, and we are committed to making digital assets accessible without depending on insecure browser-based wallets or a plethora of decentralized applications. With Ledger Live and Kiln, people now have transparent and simple solutions for rewards. We are excited to see the expanded options for Stablecoins made available to Ledger Live users.”

Ledger states that despite stablecoins being one of the most widely used assets in the cryptocurrency world, only 4% of their holders are currently earning returns on their USDC and USDT. “This integration opens up the profitability of stablecoins to users and provides full autonomy over digital assets, unlike centralized exchanges that take control and limit returns to decentralized application browsers,” the company said in a statement.

Ledger celebrated its 10th anniversary in 2024 and claims that its devices secure more than 20 percent of the world’s crypto assets, having sold over 7.5 million hardware crypto wallets to customers in 210 countries.

Kiln manages more than $11 billion in cryptocurrencies, handling about 4.5% of Ethereum’s total asset staking and 2.6% of Solana.

Hardware wallets manufactured by Ledger are widely regarded as the safest and most reliable way to store Bitcoin and other crypto assets. As long as the seed phrase storage is handled with care, there’s no way that any malicious actor or software could endanger the safety of your crypto.

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