Key highlights:
- OKX Money lets users save, send, and spend stablecoins while offering up to 10% APY on eligible USDG balances.
- The 10% yield isn’t available to everyone, with eligibility tied to factors including deposits, spending, and OKX VIP status.
- OKX has not disclosed exactly how it funds the 10% yield, leaving a key question around the sustainability of the headline return.
OKX has launched OKX Money, a standalone app that lets users save, send, and spend dollar-backed stablecoins while earning up to 10% APY on eligible USDG balances. However, the headline yield comes with eligibility requirements, and OKX has not disclosed exactly how it funds the highest rate.
OKX Money targets emerging markets
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OKX also wants Money to function as an everyday payments product. Users can access virtual or physical cards, spend in different currencies without foreign exchange fees, and receive up to 10% cashback on eligible purchases. The company said around 70% of the people it wants to serve have never used a crypto application, so the app keeps much of the blockchain infrastructure out of sight.
The primary feature is the advertised 10% APY on USDG. OKX says qualifying customers can earn the yield without staking their tokens or locking their funds, meaning the balance remains available for spending and transfers.
However, not every customer automatically receives the top rate. An OKX spokesperson revealed that users can qualify for a higher reward tier by meeting a 30-day average deposit threshold, reaching a specified 30-day spending amount, or attaining a higher OKX Exchange VIP status.
The cryptocurrency exchange has not published a universal rate for every user, while the company’s launch announcement also warns that product availability, rates, and features vary according to region and eligibility.
OKX does not explain where the yield comes from
The biggest unanswered question is how OKX funds the 10% return. When asked about the source of the yield, an OKX spokesperson declined to comment.
The distinction matters because stablecoin yield can come from different sources, including income generated by reserves, exchange-funded rewards or other business revenue. Paxos, the issuer behind USDG, distributes earnings from USDG reserves through the Global Dollar Network, whose reserves include U.S. Treasury bills, money market funds and cash.
OKX’s previous USDG rewards program provides some additional context. The exchange has previously offered up to 10% APY on the first $10,000 of USDG through OKX Pay, while balances above that threshold earned a lower rate.
Despite the haziness surrounding the yield, OKX is in building mode. Early in the week, OKX teamed up with NYSE’s parent company to launch a joint venture to offer 24/7 trading of tokenized US stocks.
Source:: OKX Launches Stablecoin App Offering up to 10% Yield — but There’s a Catch