YieldClub launches crypto savings app promising up to 12% APY as investors back $2.5m pre-seed round

What is YieldClub and how does its new crypto savings app offer up to 12% APY on stablecoins?

YieldClub, a Washington-based fintech startup launched by former Rally and Kabam executives, has announced the public rollout of its high-yield crypto savings app, which offers users up to 12% annual percentage yield (APY) on stablecoin deposits. The launch coincides with a successful $2.5 million pre-seed funding round led by early-stage fintech and Web3 investors, positioning the company to target a global audience underserved by traditional low-interest savings instruments.

Founded in 2025 by CEO Mahesh Vellanki and CTO Michael Li, YieldClub offers a mobile-first platform that simplifies participation in decentralized finance (DeFi). Its flagship product distills complex yield-generation strategies—previously accessible only to crypto insiders—into a sleek, intuitive interface tailored for mainstream adoption. The app is built on a non-custodial model, allowing users to retain complete control over their funds while earning yield on digital assets like USD-pegged stablecoins.

How does YieldClub simplify decentralized finance strategies for everyday users and first-time crypto investors?

YieldClub enters the consumer fintech market at a time when high inflation, low interest rates, and market volatility have pushed savers to explore alternatives beyond traditional banking systems. While DeFi has promised outsized returns for years, platforms have often been fragmented, opaque, and inaccessible to non-technical users.

YieldClub addresses these challenges by integrating audited DeFi protocols like Morpho, which facilitate yield generation through stablecoin lending and borrowing pools. The app abstracts the underlying complexity—gas fees, wallet management, smart contracts—into an easy-to-navigate experience powered by social login, regional fiat-to-stablecoin onramps, and a mobile-first user journey.

“YieldClub distills institutional-grade DeFi strategies into something as simple as a few taps on your phone,” said CEO Mahesh Vellanki. “It’s the high-yield savings tool we wished existed for ourselves—secure, transparent, and built for real-world users.”

The startup’s non-custodial architecture also means users aren’t required to trust YieldClub with direct custody of funds, an increasingly important consideration after several custodial crypto platforms failed in recent years. Instead, funds are deployed through smart contracts integrated with decentralized protocols, ensuring that users remain in control at all times.

Which investors backed YieldClub’s $2.5 million pre-seed round and what does this imply about institutional confidence in DeFi apps?

YieldClub’s $2.5 million pre-seed round drew participation from a cross-section of high-conviction crypto and fintech investors. Lead backers include Flex Capital, The House Fund, Superlayer, and Pharsalus. In addition, strategic angel investors with deep consumer tech and crypto pedigrees participated in the round. These include Kevin Chou (Founder, Kabam), Sam Shank (Founder, HotelTonight), Charlie Songhurst (former Microsoft Head of Strategy), and early contributors to Solana.

The participation of these backers signals rising institutional confidence in consumer-facing DeFi platforms that emphasize usability and regulatory alignment. According to sentiment shared by investors, YieldClub’s unique combination of deep technical infrastructure and a consumer-centric interface is what separates it from earlier attempts to mainstream crypto savings products.

“YieldClub has cracked the code on making DeFi truly consumer-friendly,” said Auren Hoffman, General Partner at Flex Capital. “Mahesh and Michael combine real crypto depth with a proven record of scaling apps to millions of users. They are well-positioned to unlock the next wave of DeFi adoption.”

This funding will be used to finalize app development, expand yield strategies, grow the product and engineering teams, and establish fiat on-ramp partnerships—particularly in emerging markets with high inflation and fast-growing stablecoin usage, such as Brazil, Mexico, and Turkey.

What markets is YieldClub targeting and why are stablecoin returns attractive in emerging economies?

YieldClub’s go-to-market strategy emphasizes high-growth regions where traditional banking infrastructure is either underdeveloped or underperforming. In economies where local currency devaluation and inflation have eroded savings, the ability to earn stable USD-denominated returns through decentralized platforms is becoming increasingly attractive.

Brazil, in particular, has seen surging adoption of stablecoins as a hedge against local inflation. YieldClub plans to tailor its onboarding flow to these markets by localizing currency conversions, enabling regional KYC flows, and offering multi-language support. The app’s mobile-native experience also aligns with digital-first banking trends prevalent across Latin America and Southeast Asia.

In these markets, the promise of 8%–12% yield on USD-pegged stablecoins—coupled with capital preservation—offers a compelling alternative to local bank deposit rates, which often trail inflation or come with cumbersome account restrictions.

Institutional observers have noted that platforms like YieldClub may accelerate the formalization of decentralized banking services in emerging economies, as long as compliance and consumer protections scale alongside product adoption.

How does YieldClub plan to expand its product suite beyond savings and what is the long-term vision?

Beyond its core savings feature, YieldClub has laid out an ambitious product roadmap that includes launching a debit card linked to stablecoin balances. This will allow users to spend their crypto earnings in real time while continuing to generate yield, effectively merging DeFi with everyday financial utility.

The team is also exploring tokenized equities, potentially allowing international users to invest in U.S. stock-like assets without needing access to traditional brokerage accounts. While still in early stages, these features are designed to deliver diversified financial tools that function globally, without centralized intermediaries.

“Think Robinhood, but for DeFi,” said Vellanki. “We’re bringing institutional-grade tools to the mainstream, by making them simple, intuitive, and available on your smartphone.”

Analysts believe this feature expansion could help YieldClub emerge as a category-defining consumer DeFi platform, similar to how Robinhood popularized commission-free stock trading. The combination of passive income, direct spendability, and global asset access positions the platform for long-term relevance if regulatory headwinds can be addressed.

When is YieldClub launching publicly and how can users access the crypto savings platform?

YieldClub is now available for preorder on the Apple App Store, with its official public launch slated for Monday, June 23, 2025, across both iOS and Android platforms. Initial access will prioritize U.S., Latin America, and parts of Asia, with expansion to other regions anticipated in subsequent quarters.

Users will be able to deposit stablecoins, track yield in real time, withdraw funds anytime, and stay in control of their assets via the non-custodial wallet integration. The app’s onboarding requires no prior crypto experience, and social login plus regional payment integrations will lower the friction typically associated with DeFi participation.

For new users, this launch represents one of the first chances to earn double-digit yield on dollar-equivalent deposits through a fully mobile, easy-to-understand app that prioritizes both returns and safety.

What is the long-term outlook for YieldClub as DeFi moves toward consumer-friendly finance?

With legacy financial institutions still adapting to decentralized finance, startups like YieldClub are carving out early leadership positions by focusing on accessibility, transparency, and yield generation. While institutional DeFi participation is growing, the lack of user-friendly platforms remains a barrier for everyday investors.

Analysts expect that as regulators provide clearer frameworks and as user protections mature, DeFi-native platforms like YieldClub could become part of a hybrid financial system, offering both yield and security to consumers.

The company’s early backers, strong technical team, and focus on non-custodial architecture have positioned it well to benefit from this shift—especially as consumers globally seek refuge from inflation and low-yield bank accounts.

YieldClub’s ability to deliver institutional-grade yield strategies to consumer smartphones, while maintaining security and regulatory awareness, will determine whether it becomes a mainstream fixture in global fintech or remains a niche DeFi tool.