Yield-Bearing Asset

Definition ∞ A yield-bearing asset is an investment that generates periodic income or returns for its holder. This can include traditional financial instruments like bonds, dividend-paying stocks, or interest-bearing savings accounts, as well as digital assets that offer staking rewards or lending interest. The income is typically earned over time and represents a return on the initial capital invested. Such assets are sought after by investors looking for passive income streams.
Context ∞ In crypto news, yield-bearing assets are a central theme within decentralized finance (DeFi), where users can earn returns through staking, lending, or providing liquidity to protocols. Reports often highlight various DeFi protocols offering different yield opportunities and their associated risks. The pursuit of yield on digital assets drives significant activity and innovation in the cryptocurrency market.