Interest Bearing Asset

An interest-bearing asset, traditionally, refers to any asset that generates interest for its owner. These assets typically encompass both liquid assets (such as cash, balances, interest from banks, trading and available-for-sale securities) and non-liquid assets (including various financial assets designated at fair value, held-to-maturity investments, gross loans), as well as other interest-bearing components. In the blockchain and crypto industry, interest bearing assets are prevalent and can comprise cryptocurrencies or crypto-related financial instruments that earn interest for their holders. These assets are often leveraged within decentralized finance (DeFi), an advancing financial paradigm facilitated by blockchain technology.