How your money earns
Where the rewards come from, why they're rewards and not interest, and the honest mechanics, stated plainly.
Where rewards come from
Your balance sits in USDG, the Global Dollar, a regulated, fully-reserved digital dollar issued by Paxos and natively supported on Robinhood Chain. The reserves backing USDG generate returns, and the Global Dollar Network shares those returns with participating platforms. Willow passes rewards through to you on eligible balances held in your own wallet.
You earn for holding a regulated digital dollar, not for taking on risk, and not by lending your money to anyone.
Rewards, not interest
This distinction matters and we will always state it plainly:
- Rewards are rewards, not interest. Willow is not a bank and holds no deposits.
- The rate is variable. It derives from the USDG program and prevailing rates, and it can change or cease.
- Rewards are not guaranteed.
- Rewards are paid in USDG.
Earning only happens in your wallet
Rewards accrue on balances held in your own wallet. Money in transit, or drawn onto the card at the moment of spend, is not earning, which is precisely why just-in-time funding exists, and precisely why Willow will never ask you to pre-load a balance.
The design follows the principle: the queue at the coffee shop should not cost you yield.
We publish the reward rate before launch, once it is confirmed. We would rather show you nothing than show you a number we can't stand behind.
A note on honesty
Trust is the product. Willow describes this mechanic exactly as it works, including the parts that are less flattering, like the fact that money on the card, mid-spend, is briefly not earning. We would rather be precise than impressive.
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