Where to Earn Interest on Bitcoin in 2026?

Bitcoin holders in 2026 are no longer limited to “hold or sell.” A third option has matured: earn yield on BTC while keeping exposure intact.

That said, earning interest on Bitcoin is structurally different from earning on stablecoins. BTC does not generate native yield. Returns typically come from lending markets, liquidity provision, or banking-style custodial services

Each model carries a different risk profile: custodial vs non-custodial, fixed vs floating, structured vs market-driven.

This review compares three primary routes for earning compound interest on BTC in 2026:

Clapp — structured yield with daily compounding

DeFi solutions like Rootstock / Sovryn — non-custodial BTC lending and liquidity

Bitcoin-focused banking services (Xapo Bank, River) — regulated custody with yield features

Clapp offers BTC yield through its Flexible Savings product, combining daily compounding with full liquidity. Unlike many crypto-only yield platforms, Clapp offers native EUR support. Besides, Clapp is a registered Virtual Asset Service Provider (VASP) in the Czech Republic, operating under EU AML and compliance standards.

BTC Terms with Clapp Flexible Savings

Interest accrues daily and compounds automatically, increasing effective annual return without requiring manual reinvestment.

For long-term BTC holders, this enables passive yield while preserving price exposure and liquidity.

Native EUR Savings via SEPA

Unlike many crypto savings platforms that operate purely in stablecoins, Clapp supports native EUR deposits via SEPA.

This allows users to:

Deposit euros directly from a bank account

Earn 5.2% APY on EUR in Flexible Savings

Move between fiat and crypto savings without forced stablecoin conversion

For EU-based users, this reduces friction and currency conversion steps. It also simplifies treasury management for businesses holding euro-denominated capital.

The ability to earn yield on both BTC and EUR within the same platform supports multi-asset capital structuring.

For holders who prefer non-custodial structures, Bitcoin Layer 2 ecosystems offer lending and liquidity options.

Rootstock (RSK)

Rootstock is a Bitcoin sidechain secured by merge-mining with Bitcoin. It enables smart contracts while remaining anchored to BTC.

Users can:

Lend RBTC (BTC bridged to Rootstock)

Provide liquidity in decentralized markets

Participate in lending pools

Returns depend on borrowing demand and liquidity incentives. Yields fluctuate and may be significantly higher than custodial platforms during periods of strong demand.

Sovryn

Sovryn operates on Rootstock and focuses on decentralized Bitcoin finance.

BTC holders can:

Interest accrues algorithmically and compounds if reinvested.

Structural Characteristics of BTC DeFi

Non-custodial wallet control

Smart contract exposure

Floating, market-driven yields

Impermanent loss risk (for liquidity providers)

Bridging risk when moving BTC to Layer 2

This route appeals to users who prioritize sovereignty over simplicity. Yield can be higher, but risk expands to include smart contract vulnerabilities and liquidity volatility.

Another route is Bitcoin-focused financial institutions that blend custody with yield services.

Xapo Bank

Xapo operates as a regulated Bitcoin bank in certain jurisdictions.

Features include:

Custodial BTC storage

Interest-bearing BTC accounts (where available)

Banking integration (cards, transfers)

Yield typically comes from institutional lending models. Rates are conservative relative to DeFi but structured within regulated frameworks.

River

River is a Bitcoin-only financial platform offering brokerage and custody services. Certain yield features may be available depending on jurisdiction and program structure.

The focus is:

Rates tend to be lower than DeFi and promotional CeFi platforms but emphasize compliance and operational clarity.

All BTC yield carries risk because Bitcoin itself does not generate organic income.

Key risk categories:

Counterparty insolvency (custodial platforms)

Smart contract exploits (DeFi)

Bridging vulnerabilities (Layer 2)

Liquidity withdrawal constraints

Higher yield typically corresponds to higher structural complexity.

Earning interest on BTC in 2026 is possible through multiple frameworks. Clapp offers a structured custodial model with daily compounding, suitable for liquidity-focused holders.

Rootstock and Sovryn provide non-custodial lending and liquidity opportunities, with variable returns tied to decentralized markets.

Bitcoin banking services like Xapo and River emphasize regulated custody and simplified yield programs, typically at conservative rates.

Ultimately, the right choice depends on risk tolerance, preference for custody control, and liquidity needs

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.