Tempo Earn Launches with 4% APY Target

Tempo, a blockchain platform, has launched Tempo Earn, a product that allows fintechs to pay users rewards on idle stablecoin balances. The first deployment is with Deel, a payroll platform, which offers a promotional target rate of up to 4% APY. This rate is variable and driven by market conditions.

The interest prohibition in the GENIUS Act bars permitted payment stablecoin issuers from paying holders 'any form of interest or yield' for holding the token. Tempo Earn sources its yield from tokenized money market funds, on-chain lending, and institutional credit, with the platform choosing the assets and deciding how rewards are split between it and its customers.

The issuer never pays the holder; a lending protocol does. Deel built the reference implementation in June when it launched DLUSD, a digital dollar voucher that lives inside Deel and is always worth $1. It can be converted back to USD and used within the platform.