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We’ve been hearing from many of you about planning ahead—especially figuring out what to do with your profits once the bull cycle peaks. Smart thinking! 🥳
But deciding what to sell into can feel overwhelming.
Stablecoins? Great start. But which ones? And what if they just sit idle in your wallet, collecting dust? That’s old-school.
It's 2025—stablecoins now offer an effortless 15-20% yield. So why miss out on this massive opportunity to grow your wealth?
Check out the chart below to see the yields our favorite stablecoins provide to its holders.
How do you feel about a 12.5% yield with manageable risk? Because it seems quite appealing to us!😍
Think of stablecoins as your employees. They should always be working for you—earning, growing, and hustling 24/7.
Not sure where to start? You’re in the right place. Today, we’re diving into our game plan for the post-bull cycle era.
Here’s what we’re covering:
- Why stablecoins are a must-have in your strategy
- Which stablecoins we’re choosing and why
- How to make them work harder with yield opportunities
- Risks, rewards, and everything in between
P.S. - We’re hosting a Monthly PRO Portfolio Update next week — scroll to the bottom for more info. 👀
Sound good? Let’s get into it!
A few months ago, we shared our bullish thesis on stablecoins (read it here), and now it seems the big names are starting to take notice too.
Influential figures like Billionaire Chamath Palihapitiya or leaders from Y Combinator are beginning to pay attention and talking about huge opportunities here too.
Not familiar with them? Not a problem.
What’s important is that these individuals are now vocal advocates for stablecoins.
Alongside all the impressive tech advancements (we dive deeper in this report), it’s possible that someone also shared this chart with them.
Plus the change in US politics also play a key role.😉
The total circulation of stablecoins has recently exceeded an impressive $200 billion.
Even more exciting, this growth shows no signs of slowing down.
Industry predictions, including our own, suggest that figure could reach $400 billion or even $500 billion by the end of the year.
But today, we’re not here to discuss our bullish outlook on stablecoins. Instead, we’ll focus on how stablecoins can play a tactical role in your portfolio when the market begins to overheat.
Here’s why stablecoins are a game-changer for your portfolio:
- Stability you can count on: They hold a steady $1 value, even when the market gets wild.
- Earning potential: You can rake in up to 20% yield in a bull market and maybe about 10% in a bear market.
- Complete control: No paperwork, no banks—your funds, your rules.
But with so many stablecoins out there, how do you choose the best fit?
While “best” depends on your goals, knowing all your options and understanding the backing strategy is critical if you’re planning to park a chunk of your assets in stablecoins.
This is a step you can’t afford to overlook.
Got your attention? Perfect. Let us show you how to make the most of it—continuing to earn money, even when prices stay steady or go down!
Without further ado, let’s dive right in.
STABLECOINS ARE YOUR BEST FRIEND
The widespread adoption and growing popularity of stablecoins is evident from their recent market cap exceeding $200 billion. This achievement underscores the trust that users place in these digital assets, and their increasing use demonstrates that stablecoins provide reliability and peace of mind.
But not everyone fully understands stablecoins and their various types, so let’s start by breaking that down.
Which stablecoins exist today?
Stablecoins can generally be divided into two major categories:
1/ Centralized stablecoins ($USDT, $USDC) - 90% marketshare
These are managed by centralized institutions and backed by actual dollars held in reserve.
For example, if there is $40 billion worth of $USDC in circulation, Circle—the company behind $USDC—must maintain $40 billion in reserves, either in cash or cash equivalents.
By cash equivalents, we mean assets like U.S. treasuries. But instead of holding $40 billion in cash, Circle might allocate a significant portion to U.S. treasuries, which yield around 4% annually.
Doing the simple math, that's a $1.6 billion profit. Not too shabby.
That’s a solid business for Circle, which is why they’re planning to go public and launch an IPO this year.
The downside? Stablecoin users don’t receive any of the yield generated. That sucks.😤
Some people aren't just concerned about missing out on yield—they also dislike centralized systems.
What if Circle were shut down or pressured by regulators to freeze your assets? Fears like these have driven the rise of decentralized stablecoins.
2/ Decentralized stablecoins ($USDS, $USDe) - 10% market share
This category represents stablecoins managed by decentralized organizations, meaning no single entity has full control over them.
These stablecoins are typically backed by tokenized assets, such as US treasuries (similar to $USDC) but also crypto assets like $BTC or $ETH.
While we’ve seen past attempts to create stablecoins using alternative mechanisms like algorithmic models, the market today is overwhelmingly dominated by fiat-backed stablecoins (supported by real dollars in a bank) and crypto-backed stablecoins (collateralized by assets like $BTC or $ETH), which together account for 99% of the market.
Simply put, stablecoins must be backed by collateral of equal or greater value, whether in fiat currency or cryptocurrency.😉
There is, however, an important distinction to note: while some stablecoins automatically generate yield, others do not.
- Non-yield bearings stablecoins Remember when we mentioned that Circle, the company behind $USDC, earns a 4% annual yield from US Treasury holdings? That yield benefits Circle—not the holders using their stablecoin. So $USDC (or $USDT, which works very similarly) are great examples here. They might be great for e-commerce payments, but when it comes to people chasing higher yields, they’re not exactly the star of the show. That's what brings us to the next category.
- Yield-bearing stablecoins By simply holding these stablecoins, you can automatically earn a return. Some stablecoins offer yields tied to US Treasury rates (currently around 4%), while others boast returns as high as 10% or even 20%.
However, higher returns often come with higher risks.
That’s why it’s important to carefully evaluate both the potential rewards and the risks of each yield-bearing stablecoin before deciding how to allocate your funds.
The appeal of yield-bearing stablecoins is clear. While you can find yield opportunities for non-yield-bearing stablecoins like $USDC in DeFi or CeFi, doing so can be time-consuming and often requires trusting third-party platforms to manage your deposits. Yield-bearing stablecoins eliminate much of this hassle, providing a simple and convenient way to earn returns without the extra effort of searching for opportunities elsewhere.
So, it probably won’t shock you when we say we’re planning to stick with these—because why mess with a good thing? Talking about good things, we are going to share our best picks with you.
Uh, Oh… 😧 The rest of this report is exclusive to Milk Road PRO members!
WHAT’S LEFT INSIDE? 👀
- The stablecoins we love and use
- How they compare to each other
- What kind of yields you can expect
- How we plan to allocate our funds
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