Options at Kraken for Uninvested Cash
Key Takeaways:
• Kraken does not pay interest on unused U.S. dollar balances.
• Customers can earn rewards on certain U.S. dollar-pegged stablecoins.
• Kraken currently offers rates of up to 5% APY on USDC.
If you want to generate returns from idle money at Kraken, several alternatives to holding a regular cash balance are available.
Overview of Cash Options at Kraken
U.S. dollars and other fiat currencies held as ordinary Kraken account balances do not earn interest. These fiat balances are not FDIC-insured bank deposits, and Kraken does not pay customers interest on their unused U.S. dollar balances.
One option is to exchange fiat currency for stablecoins that qualify for rewards. Stablecoins are cryptocurrencies designed to follow the value of another asset, most commonly the U.S. dollar. Once funds are converted into an eligible stablecoin, Kraken can provide rewards based on the specific coin, rewards program, region, and Kraken+ status.
Availability differs by location, and stablecoin products are not accessible to every Kraken customer. Countries where Kraken does not permit crypto trading include Libya, South Sudan, and Iran.
Kraken also provides staking rewards on certain cryptocurrencies, although these digital assets are not designed to maintain a value equal to the U.S. dollar.
Eligible Stablecoins
In qualifying regions, Kraken provides Stablecoin Rewards on several supported stablecoins, including:
| Coin |
APY (Reward Rate) |
| Global Dollar (USDG) |
2% or 4.25% with Kraken+ |
| USD Coin (USDC) |
1.75% or 3.75% with Kraken+ |
| Apyx USD (APXUSD) |
3% or 6% with Kraken+ |
| Ethena USDe (USDE) |
Up to 4.25% with Kraken+ |
| Ripple USD (RLUSD) |
1.75% or 3.75% with Kraken+ |
These stablecoins seek to maintain a value tied to the U.S. dollar, although the methods used to support their value are different. USDG, USDC, and RLUSD rely on reserve-backed structures, while APXUSD and USDe use different collateral and hedging approaches.
Kraken also has Fixed Rate Opt-In Rewards that can reach 5% APY in eligible regions; these fixed-rate products do not require a Kraken+ subscription. Kraken+ costs $4.99 per month or $49.99 per year and can be paid in several currencies, including USD, GBP, CAD, AUD, CHF, and EUR.
Kraken Referral Promotion
Fixed-Rate Rewards
Eligible customers seeking higher yields can use Kraken’s Fixed Rate Opt-In Rewards. Under this program, supported stablecoins are committed for a chosen term in return for a fixed reward rate.
Kraken offers fixed-rate rewards on USDG, USDC, and USDT with 3-month, 6-month, 12-month, and 18-month terms. Rates can reach 5% depending on the asset, term, and region.
Signing Up
Kraken Stablecoin Rewards do not start automatically. Customers must first enable Stablecoin Rewards, after which eligible stablecoins in the account begin accumulating rewards.
On the website, sign in and click your profile picture in the upper-right corner. Choose Earn Settings, then verify that Stablecoin Rewards is turned on under the Auto Earn programs section. You can turn the program off through the same menu.
These controls are also available through the mobile app. Tap your profile picture in the upper-left corner, choose Earn Settings, and switch on Stablecoin Rewards under Auto Earn.
Converting to Stablecoins
Once fiat currency has been deposited into Kraken, you can exchange it for a stablecoin by purchasing the asset in much the same way as another cryptocurrency. Search for the coin by its name or ticker symbol and choose the Buy button from its asset page.
Kraken also includes a conversion tool on both its website and mobile app. In the mobile app, the feature is available through the Trade menu. USD can be converted to USDC or USDG at a 1:1 rate with no spread or conversion fee.
Getting the Rewards
Rewards generated by qualifying stablecoin balances accrue daily and are distributed weekly. Payments are made in the same stablecoin being held rather than in fiat currency.
Kraken Referral Bonus
Updated on 8/24/2026.
Chad Morris has been analyzing investment firms for Brokerage-Review.com since 2015. Backed by FINRA Series 65, 66, and SIE credentials, his work reflects a deep knowledge of the retail brokerage industry and digital trading tools.
|