Options at Kraken for Unused Cash
Key Takeaways:
• Kraken does not pay interest on idle U.S. dollar balances.
• Rewards are available on certain dollar-pegged stablecoins.
• Kraken currently offers rates of up to 5% APY on USDC.
If you want to earn a return on cash sitting at Kraken, these are the choices currently available.
Overview of Cash Options at Kraken
When U.S. dollars or other fiat currencies are deposited into a Kraken account, those balances are not protected by FDIC insurance because Kraken is not a bank. Kraken also does not pay any interest on fiat balances, including U.S. dollars.
One option is to convert fiat into stablecoins that can earn rewards. Stablecoins are digital assets designed to follow the value of a fiat currency, most often the U.S. dollar. After converting into an eligible stablecoin, the rate paid depends on the coin and, in some cases, whether the account has Kraken+ status.
Availability depends on the country, and not every account can use stablecoin products. Some countries where Kraken does not permit crypto trading at all include Libya, South Sudan, and Iran.
Kraken also offers staking rewards on certain cryptocurrencies, although these assets are not linked to the U.S. dollar.
Eligible Stablecoins
In supported regions, Kraken offers rewards on balances held in the following stablecoins:
| Coin |
APY (Interest Rate) |
| Global Dollar (USDG) |
2% or 5% |
| Tether USD (USDT) |
4% |
| USD Coin (USDC) |
1.75% or 3.75% |
All of these stablecoins are pegged to the U.S. dollar, with that peg supported by reserves of cash and short-term U.S. Treasury securities.
To earn the 5% APY on USDG, an active Kraken+ subscription is required. Kraken+ costs $4.99 per month or $49.99 per year and can be paid in several currencies, including USD, GBP, AUD, CHF, and EUR.
Kraken Referral Promotion
Bonded APY
For users who would rather not subscribe to Kraken+, Kraken offers bonded rewards as another way to earn a higher yield. With bonded rewards, stablecoins are committed for a minimum period in exchange for a higher APY.
Right now, new allocations are available on 60-day bonded terms, which currently pay 5.25% on USDG and 5% on USDC and USDT. Kraken’s 30-day non-BTC bonded products are now deallocate-only.
Signing Up
Kraken does not automatically enable Stablecoin Rewards on eligible accounts. To start earning rewards, convert fiat currency into a supported stablecoin, turn on Stablecoin Rewards, and hold the asset in the account.
On the website, log in, click your profile picture in the top-right corner, and select Earn Settings. In the Auto Earn programs section, make sure Stablecoin Rewards is turned on.
The same controls are available in the mobile app. Tap your profile picture in the top-left corner, open Earn Settings, and turn on Stablecoin Rewards under the Auto Earn section.
Converting to Stablecoins
After depositing fiat into a Kraken account, you can convert it into a stablecoin by buying the asset the same way you would buy any other cryptocurrency. Enter the coin’s name or ticker symbol and select the Buy button from the asset’s profile page.
Kraken also has a built-in convert tool on both the website and the mobile app. In the mobile app, this tool can be found under the Trade button on the Home screen. Both methods accomplish the same thing.
Getting the Interest
Rewards on stablecoin balances are paid weekly. The payout is made in the same stablecoin being held, not in fiat currency.
Kraken Referral Bonus
Updated on 4/8/2026.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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