Key Takeaways

• Neobanks can access regulated, asset-backed yield on their stablecoin reserves that sit idle between settlement cycles. Indicative returns typically range from 3% to 8.5% p.a. depending on the product and underlying asset.
• The yield comes from regulated institutional instruments including US Treasuries, money market funds, and investment-grade corporate bonds.
• Activating this does not require locking up capital for a long period. Products such as InvestaX Earn offer daily deposit and withdrawal, with returns linked to US Treasury bills and money market funds.
• Getting started does not require building licensing, compliance infrastructure, or asset manager relationships in-house. A partnership with a MAS-licensed platform like InvestaX provides access to the infrastructure stack.

A neobank operating on stablecoin rails can process millions to billions in monthly volume, yet reserves sitting between settlement cycles, including settlement buffers, pre-funded balances, and operational float, often earn nothing. Those reserves can generate 3 to 8.5% p.a. through regulated, asset-backed yield products.

Stablecoin treasury yield is one of the more accessible revenue additions available to neobanks today. This article explains how the yield works, what products are available, and how platforms can get started.

Why neobanks are looking at this now

According to Stablecoin Insider's Neobank Transition Report, 8 out of 10 top neobanks now use stablecoin rails internally for treasury settlement, liquidity routing, or cross-border corridors. The operational infrastructure is already in place, and the question is whether the reserves sitting within that infrastructure are being put to work.

The neobanks that have crossed into profitability, such as Revolut at $2.1 billion in revenue and $180 million profit in 2024, and Nubank at nearly $2 billion in net income the same year did it by diversifying away from interchange and FX into higher-margin products. The revenue composition of a profitable neobank looks different from an unprofitable one. Stablecoin treasury yield is one of the next accessible ways to add a new income line.

Where the yield comes from

Stablecoin yield is not generated by the stablecoin itself. Reserves are deployed into short-duration real-world financial instruments such as US Treasuries, money market funds, investment-grade corporate bonds and the interest flows back to whoever holds the position.

The scale of the underlying market helps explain why this is commercially meaningful. USDC and USDT combined held approximately $130B in short-dated US Treasuries as of mid-2025, representing roughly 2.25% of the entire US T-bill market, according to TD Securities data cited by RebelFi. Tether reported $5.7B in net profit in the first half of 2025 from deploying its reserves this way. That yield has historically accrued to the stablecoin issuer rather than the holder.

Regulated infrastructure now exists to route a portion of that yield to institutional holders, via licensed tokenized fund structures and RWA vault products backed by institutional asset managers. 

The GENIUS Act, signed into law in the United States in July 2025, reinforced this structural separation by prohibiting US payment stablecoin issuers from paying yield directly to holders. This has pushed yield generation into a separate asset layer, creating a clearer commercial pathway for platforms holding stablecoins to access returns through licensed third-party infrastructure like InvestaX. 

How much of your stablecoin reserve can be deployed?

Not all of a neobank's stablecoin balance is available for yield deployment at any given time. A portion must remain liquid to cover settlement obligations, user withdrawals, and compliance buffers. The core trade-off is between flexibility and yield: the more capital kept instantly accessible, the less that can be allocated to higher-yielding positions.

According to RebelFi's analysis of neobank float patterns, a neobank with $50M in stablecoin balances and stable historical daily outflows of around 5% can typically allocate 40 to 50% of reserves into short-duration yield positions without meaningfully affecting operational liquidity, translating to roughly $20M to $25M in deployable float. That figure assumes conventional yield products where redemption takes time.

With InvestaX Earn, all products including the high yield corporate bond (InvestaX HYCB) allow daily deposit and withdrawal with no lock-up. This means a platform can allocate a higher portion of its reserves into yield, across both MMF and corporate bond exposure via InvestaX Earn, without sacrificing the operational flexibility needed for daily settlements.

The right allocation still depends on each platform's withdrawal patterns, settlement cycles, and regulatory constraints. But the liquidity constraint that has historically limited treasury yield deployment is materially reduced when the underlying product allows in and out at any time.

What the numbers look like

The figures below are illustrative, based on current indicative market rates, and will vary depending on product, allocation, and prevailing conditions.

InvestaX, a MAS-licensed Capital Markets Services and Recognised Market Operator platform in Singapore, currently offers the following regulated yield products to platform partners:

For a platform holding $50M in stablecoin reserves and deploying 50% into yield products, the revenue picture looks roughly like this:

Because yield here is linked to US Treasuries or investment-grade corporate bonds rather than transaction volume, it does not generally compress when interchange income or FX spread revenue does. For a platform managing variable transaction revenue, that difference in income profile is meaningful.

How To Get Started?

Accessing institutional-grade yield products has historically required an internal investment team, direct asset manager relationships, a bankruptcy-remote SPV structure, and custody arrangements. Most neobanks do not have those capabilities in-house.

InvestaX provides the components a neobank needs to get started: regulated RWA yield products backed by institutional asset managers, and the licensed infrastructure to access them. 

Here is how it works with InvestaX:

• Complete onboarding, KYC, and accreditation - a one-time process to verify eligibility as an accredited or institutional investor
• Choose a yield product based on your yield target, risk appetite, and liquidity needs - from daily-liquid MMF products to higher-yielding corporate bond exposure
• Deploy USDC into your chosen vault via the InvestaX platform or API integration
• Yield starts accruing immediately, with returns linked to the underlying institutional asset
• Withdraw based on the product terms - products such as InvestaX Earn and InvestaX HYCB allow daily withdrawal with no lock-up.

Talk to us about a partnership.