GM. This is Milk Road PRO, mapping the onchain credit boom and showing you where stablecoins stop sitting still and start paying rent.
In our last report, we made it clear we’re bullish on stablecoins.
Today, we're doubling down.
✍️ If the stablecoin market really is on track to hit $3T by 2030, the opportunity ahead is massive.
One category in particular stands out to us: yield-bearing stablecoins. Or as we called them in our earlier report, investments.
These tokens don’t just hold their value against the dollar; they also accrue yield, which makes them much more appealing than regular stablecoins.
Naturally, that raises the question: where’s the real opportunity?
For the first time, we believe the most exciting upside exists directly on blockchains. 🤗
Why?
👉 Because blockchains unlock yield strategies that were previously too complex or inaccessible, and they provide the best way to distribute those strategies at scale.
That’s the core idea behind our big bet on the Onchain Credit Boom.
We’re about to see a wave of new, innovative yield strategies roll out, built to deliver strong, uncorrelated returns at scale that are going to drive demand through the roof.
This isn’t some distant future. It’s already happening. And the momentum is picking up fast.
We’ve already identified yield-bearing stablecoins as the breakout category to watch in 2026 and beyond.
Right now, total supply is “just” around $19B.
✍️ We expect that number to grow fast, reaching $330B by 2030, with an 80% growth year over year.
Source: Milk Road
If yield-bearing stablecoins reach $330B by 2030, and protocols manage to capture just 1.5% of that as Net Interest Margin (NIM), which is a reasonable estimate, that adds up to around $5B in net revenue.
PS: If you're not sure what NIM means, no worries. We’ll explain that later.
👉 That’s a big pie, and plenty of protocols will be looking to get a slice.
Now you might be wondering what the typical NIM looks like for banks, fintechs, or even existing crypto protocols.
Don’t worry, we’re going to break it all down and more. Here’s what we’ve got for you today:
- 3 reasons that make this particular market so attractive.
- What are the key categories that exist there today?
- What second-order effects could this trend trigger?
- What are the key things to monitor?
- Which projects are best positioned to win in this space?
This is quickly becoming one of our strongest convictions.
👉 We believe credit, in the form of yield, is increasingly moving onchain, and yield-bearing stablecoins are the best way to express that view.
Because as new credit products aka yield strategies emerge, yield-bearing stablecoins will either directly represent access to that product or some other yield-bearing stablecoins will allocate portions of their balance sheets to them to diversify exposure while tapping into potentially more attractive yields.
Today, we’re ready to walk you through our full thesis.
WHY ARE WE BULLISH ON YIELD-BEARING STABLECOINS
There are really three clear reasons why we’re so bullish on this space.
1. Accelerating demand
Our long-term view is simple: more and more people and capital will move toward holding money that actually works for them.
👉 Money that earns yield instead of just sitting still.
Why? Because the financial upside is too good to ignore, and the effort it takes to access that yield is getting easier and easier.
Think of it like this.
Would you rather own a regular stock or the same stock that also pays you dividends? The answer is obvious.
We’re still used to thinking in terms of checking accounts versus savings accounts, but that difference is starting to disappear.
Even today, you can hold dollars that earn you some real yield while still being able to spend them at any time.
All of these points point to one thing:
✍️ More people and more capital will start using yield-bearing stablecoins by default, and their share of the market will keep growing.
And that’s the core of our thesis.
This isn’t about wishful thinking or relying on naive arguments.
What we’re seeing is a clear trend that comes from first-principles thinking and is backed by how real users behave when given better financial options.
You might argue that the current version of the Clarity Act, which prohibits yields on stablecoins, is bearish for this market. And in some ways, that’s true, but in other ways, it’s not.
The reality is that decentralized protocols don't fall under the Clarity Act rules.
This is a bill made specifically for centralized companies with stablecoins in the U.S.
Decentralized protocols like Sky, Aave, or Ethena do not need to comply with these regulations and remain completely legal to use and invest in them across any jurisdiction (at least for now).
This means they have a very clear advantage.
👉 They get more time to build stronger products and defensible moats without serious competition from traditional finance players.
At the same time, we’re pretty confident that companies like Coinbase won’t just accept this law as the final word. They’ll keep pushing regulators to eventually allow yields on stablecoins.
Will it happen this year or next? We don’t know. But we’re fairly sure it’s just a matter of time.
All right, let’s talk about another reason behind our conviction.
2. Yield moving onchain
If you don’t see this yet, let us help you.
The tech is simply better:
- No more waiting a few business days.
- No more crazy banking fees.
- No more products that only work in one corner of the financial system.
Onchain is faster, cheaper, and more efficient.
Think about the size of what’s out there today:
- Bonds alone make up a $130T market.
- Bank deposits? That’s another $100T.
- Then you’ve got money market funds holding over $10T, and the list goes on.
👉 That’s the scale we're talking about, and it's all starting to move onchain.
Plus, get ready for a wave of new strategies.
These weren’t possible before, but with blockchain’s programmability and built-in liquidity, they’re finally within reach.
And the best part? The total addressable market isn’t limited to one region or group. It’s anyone with an internet connection. That’s the whole world.
So no, it’s not naive to think this is happening. In fact, it’s already picking up speed and it’s only accelerating from here.
So even at this stage, the case is already strong.
👉 Accelerating demand is meeting accelerating supply. That’s a powerful combo.
But there’s one more thing that really matters, especially for investors looking at this space.
3. This market is more stable and less driven by price swings
It doesn’t follow the same highs and lows as the rest of crypto. Sky shows exactly what that looks like, as its business fundamentals are uncorrelated to markets in 2025, Sky’s stablecoin supply nearly doubled, climbing to almost $10B with a 10% increase in revenue year over year
And that growth came during a year when the wider crypto market, including Bitcoin, was down.
Almost nothing else in crypto had fundamental growth like that in a down year.
This matters a lot for investors. When you back a business that relies heavily on crypto prices, you're signing up for much higher risk.
That’s what makes this particular market so interesting.
👉 The fundamentals can keep growing, even when overall sentiment is down.
Sure, yields can shift, but understand this:
- In a bull market, demand for leverage and borrowing takes off, driving yields higher and making yield-bearing stablecoins especially attractive.
- In a bear market, people shift into yield-bearing stablecoins to protect their profits, which naturally boosts demand in that environment too.
So no matter the market conditions, there’s demand. And for investors, that kind of resilience is a big deal.
Great, let’s say we’re all on the same page with our bullish stance here.
Now it’s time to look at how this trend is actually going to play out and where the opportunity might be.
We’re breaking down the key components needed for any successful yield strategy:
- Risk management: who’s in charge of managing the risk, and how are they doing it.
- Core strategy & execution: who is actually running the strategy behind the scenes.
- Infrastructure: which smart contracts or platforms the strategy is built on.
Once you start seeing more and more yield strategies available at scale, some interesting second-order effects begin to kick in, and we’re going to break those down for you, too.
The goal here is simple: To really understand how this market works, not just on the surface but all the way through.
👉 Because the deeper your understanding of a specific market, the more likely you are to spot the early winners before everyone else does.
So let’s get into it.
Uh, Oh… 😧 The rest of this report is exclusive to Crypto PRO or PRO All Access members!
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WHAT’S LEFT INSIDE? 👀
- What’s the difference between a strategy operator and a strategy allocator?
- Which projects are worth paying attention to?
- Why Pendle might be an underrated gem in this space.
- How NIM-based businesses compare.
- What you can expect from MR in 2026.
Upgrade your subscription today to unlock access to all of the milky insights above, PLUS:
- Weekly reports to help you manage investments, allocate capital, take profits, and stay ahead in crypto. 📊
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