Torch Finance, a decentralized finance platform built on the TON blockchain, announced a new annual percentage yield (APY) of 11.58% for staking its stablecoin, tgUSD. The increase, effective May 25, marks a 2.5 percentage point jump from the previous week, positioning tgUSD among the highest-yielding stablecoins in the DeFi space.
The announcement was made via a post on X at 17:00 UTC on May 26. The update underscores growing demand and adoption for tgUSD, which has maintained yields above 9% for three consecutive weeks. Torch Finance described the change as “steady growth,” citing increased user interest in passive income opportunities through stablecoin staking.
Torch Finance users can mint tgUSD by depositing Tether (USDT), stake their holdings to earn the 11.58% base APY, and boost rewards by providing liquidity on decentralized exchanges. The platform, which is fully audited, has recently rolled out several features including a soft launch of its web version, a beta invite system, a “smart mode” interface, and an ambassador program to accelerate community engagement.
The TON blockchain, originally launched as Telegram Open Network by the messaging platform Telegram in 2018, has since evolved under the stewardship of independent developers and the TON Foundation following a legal dispute with the U.S. Securities and Exchange Commission. Rebranded as The Open Network, TON now serves as a high-throughput platform for decentralized applications, with plans to onboard 30% of Telegram’s user base by 2028.
Stablecoins like tgUSD are increasingly used in DeFi for their price stability compared to volatile assets like Bitcoin and Ethereum. According to DefiLlama, the global stablecoin market cap stood at $246.38 billion as of early 2025, with USDT accounting for over 62% of the market. While stablecoins are not traditionally staked in proof-of-stake consensus models, DeFi protocols such as Torch Finance enable yield generation through lending, staking, or liquidity provisioning.
Torch Finance’s integration with PayFi, a payment-oriented DeFi service, allows users to engage with its features through Telegram’s Mini App ecosystem. The partnership enhances user experience by streamlining access to financial tools within a familiar messaging environment.
In its recent update, Torch Finance also hinted at new features with a cryptic message—“probably something”—leaving users speculating about potential token generation events or further platform upgrades. One user replied, “When is TGE?” highlighting ongoing curiosity around the project’s roadmap.
As the DeFi sector matures, platforms like Torch Finance are tapping into the demand for stable, high-yield opportunities. By leveraging TON’s scalable infrastructure and Telegram’s user base, tgUSD’s elevated APY could drive further adoption in the decentralized economy.
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