Tempo Launches Embedded Yield Product Tempo Earn for Fintech Platforms

Tempo has launched Tempo Earn, an embedded yield product that lets fintechs pay their users rewards on idle stablecoin balances. Deel is the first platform to use this feature, starting with its DLUSD token.

The $GENIUS Act prohibits permitted payment stablecoin issuers from paying holders 'any form of interest or yield' for holding the token, but Tempo Earn sources the yield from elsewhere: tokenized money market funds, onchain lending and institutional credit. The platform decides how rewards are split between itself and its users.

Deel's DLUSD has a promotional target rate of up to 4% APY, but neither Deel nor Tempo has disclosed who funds this rate or what share Deel keeps. Deel covers transaction and network fees, which Tempo's case study puts at $0.001 per transfer paid in stablecoins.

Tempo Earn is available to platforms that want to offer a digital dollar voucher to their users, as long as the token is not considered a permitted payment stablecoin under the $GENIUS Act. The OCC has proposed a rule that would create a rebuttable presumption of interest if an issuer has an arrangement with an affiliate or related third party.