Ripple’s Senior Vice President of Stablecoins, Jack McDonald, has outlined two key approaches for users to earn yield from their stablecoin holdings. Speaking on the company’s “Crypto in a Minute” educational video series, McDonald explained how holders can turn idle assets into yield-generating tools by leveraging Ripple’s ecosystem and broader DeFi platforms.
McDonald highlighted that one way for users to earn yield is by investing in interest-bearing stablecoins. This involves placing funds into digital dollar reserves that support these stablecoins. However, this option remains limited to specific jurisdictions and is not widely available due to regulatory constraints.
Utilizing DeFi and liquidity protocols
Another approach shared by McDonald includes allocating stablecoins into decentralized finance (DeFi) protocols. Users can lock their assets as collateral in lending platforms like Aave or provide liquidity to automated market makers (AMMs). According to Ripple, this on-chain method provides a more active way for users to derive financial returns using stablecoins.
While discussing alternative methods, McDonald also acknowledged that depositing stablecoins into savings accounts is an option, although it typically offers lower returns. Compared to DeFi and interest-bearing assets, this method provides reduced yield potential but may appeal to users seeking simplicity and lower risk.
Ripple aims to expand stablecoin utility
The company is promoting these strategies as part of a broader push to increase stablecoin utility across its ecosystem. According to Ripple’s official communication, the emergence of a “yield engine” signals a transition from simple digital dollar usage to more advanced on-chain financial tools.
Is your capital sitting idle?@_JackMcDonald_, SVP Stablecoins at Ripple, says it doesn’t have to.
In the latest Crypto In One Minute, Jack explores two core ways stablecoins can generate yield:
✅ Direct Yield: Interest-bearing assets.
✅ Secondary Utility: Collateralizing for… pic.twitter.com/V9wZiJpSD1— Ripple (@Ripple) January 7, 2026
Separately, Ripple’s Managing Director for the Middle East and Africa, Reece Merrick, stated that XRP has now achieved confirmed regulatory status as a non-security digital asset in the United States. Merrick attributed this development to prior court rulings and emphasized that few digital assets have obtained such definitive classification.
Despite this regulatory milestone, Ripple’s leadership stressed that the overall U.S. regulatory framework for digital assets remains underdeveloped. According to Merrick, the lack of updated regulations continues to restrict innovation for crypto businesses operating in the country.
