Kast has launched Kast Earn, a yield-bearing money administration characteristic that makes use of Gauntlet’s institutional-grade DeFi vaults to generate variable APY (presently 4%–9%) on person deposits.
Consumer funds are deployed by way of onchain lending methods and actively managed utilizing quantitative danger fashions, with earnings accruing repeatedly and remaining liquid by Kast’s spending account.
The transfer positions Kast in direct competitors with banks and cash market funds.
Stablecoin-based challenger financial institution Kast is making its stablecoin banking platform extra attractive this week. The corporate is launching Kast Earn, a device that permits accountholders to earn yield on funds of their account.
Powered by Gauntlet, Kast Earn will make use of customers’ deposits for onchain lending, permitting customers to earn yield on fiat funds of their account. Based in 2018, Gauntlet provides an automatic danger platform with institutional-grade vaults that allow decentralized finance to supply risk-adjusted yields at scale. Kast mentioned it partnered with Gauntlet due to its expertise constructing quantitative decentralized finance methods.
When a person deposits US {dollars}, their funds go into the Gauntlet USD Alpha vault, which is designed to generate sustainable yield by prioritizing long-term, risk-adjusted returns and proactively adapting as markets change. This vault has $73.8 million in complete worth locked, or TVL (roughly equal to belongings beneath administration).
As soon as a person deposits funds, their capital is distributed throughout a diversified set of established digital lending markets and actively managed utilizing quantitative danger and efficiency fashions developed by Gauntlet. The yield compounds repeatedly by Vault Share tokens, and the customers’ earnings are mirrored within the rising worth of their shares. Accountholders can money in on their shares at any time by transferring funds again to their KAST spending account. Whereas the speed of return is variable, the vault presently provides a variable APY between 4% and 9%.
Based in 2024, Kast bridges conventional finance and decentralized finance by providing a digital cash app the place customers can deposit money, USDC/T, and crypto. It additionally permits customers to spend their crypto like money with its Solana fee playing cards which can be accepted at greater than 150 million retailers and ATMs and in over 160 international locations.
In 2025, Kast developed from a easy answer to spend stablecoins right into a full-fledged world cash app. Final yr alone, the corporate launched MOVE cashback, KAST Convert, USD digital accounts, world financial institution transfers, and KAST Tags so as to add extra bank-like performance.
By providing yield-bearing money administration, Kast is inserting itself in competitors with banks and cash market funds. By embedding onchain lending and quantitative danger administration instantly right into a consumer-facing banking app, Kast is testing whether or not DeFi-based yield merchandise may be delivered with the simplicity, liquidity, and belief. If customers are capable of belief Kast’s choices as a lot as these from their conventional monetary establishments, choices like Kast Earn might change how each challenger banks and incumbents take into consideration producing returns on buyer balances in a stablecoin-driven monetary system.
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