Crypto’s ‘yield gap’ is closing fast as stablecoins and tokenized assets surge: RedStone
The gap between crypto and traditional finance yield generation is narrowing due to surging stablecoins and tokenized assets.Summary
A report by RedStone indicates that only 8%–11% of crypto assets currently generate yield, significantly lower than the 55%–65% seen in traditional finance, though this gap is rapidly closing. The narrowing is driven by the rapid onchain migration of yield-bearing stablecoins (up roughly 300% YoY), blue-chip staking products (like liquid staking for ETH and SOL), and Real-World Assets (RWAs).
RWAs, which include tokenized Treasuries and corporate debt, are projected by consultancies like Deloitte and Ripple to reach multi-trillion dollar ecosystems this decade, bringing traditional yield streams into DeFi. Yield-bearing assets are shifting from a niche to the default onchain holding format, evidenced by massive growth in liquid restaking protocols like Eigenlayer.
Furthermore, the evolving composition of crypto yield is moving toward curated collateral rather than purely incentive-driven APY. Regulatory clarity, particularly surrounding the U.S. GENIUS Act, is seen as a major catalyst accelerating the migration of cash-like instruments and fixed-income yields onto blockchain rails, despite ongoing policy debates involving major players like a16z and Coinbase.
(Source：The Block)