There are some new special investment funds, focused on investing in stablecoins like TUSD, for example, Invictus Margin Lending (IML) Fund that aims to provide investors with exposure to margin lending returns. Average annualized daily rates for USD in this capacity on Bitfinex have been in excess of 16% for the past 12 months.

Traders borrow these assets primarily for leverage trading via major cryptocurrency exchanges. Demand is strong and growing — several platforms have recently introduced margin trading functionality or increased the maximum leverage available to traders.

Returns have exceeded the hurdle rate since inception, with consistent net returns at rates of approximately 11%, while crypto lenders such as Celsius and Nexo provide just 8% in USD equivalent.