US Treasury yields range from 3.7% to 4.8% in 2026. Crypto staking pays 2-8%. On paper, they look similar.

But these are fundamentally different investments with different risk profiles, tax treatments, and purposes. Choosing between them isn't about which number is bigger - it's about what you're actually trying to accomplish.

This comparison breaks down the real differences so you can make an informed decision.

Current Yields Compared

Let's start with the numbers as of January 2026:

US Treasuries

The yield curve has normalized, with longer-term bonds now paying more than short-term bills.

Crypto Yields

Crypto yields vary more based on method and risk.

Direct Comparison

On pure yield, stablecoin lending can beat Treasuries by 1-2 percentage points. ETH staking (2-3%) actually lags behind Treasuries (3.7-4.8%). Higher-yield options come with proportionally higher risks.

But yield isn't the whole story.

Safety: Not Even Close

This is where the comparison gets real.

Treasuries: Near-Zero Risk

US Treasury securities are backed by the full faith and credit of the US government. They're considered the global risk-free benchmark.

• No default risk (historically zero)

• No counterparty risk

• FDIC-like protection unnecessary (the issuer is the government)

• Highly liquid (massive secondary market)

When people talk about "risk-free rate," they mean Treasuries.

Crypto: Risks Exist - But They're Manageable

Crypto yield carries risks that Treasuries don't - but the industry has matured significantly since the FTX era:

Smart contract risk: Yes, protocols can have vulnerabilities. This is why platform selection matters. Pistachio.fi only features thoroughly audited protocols with proven track records, and assigns expert risk grades so you know exactly what you're getting into.

Counterparty risk: FTX was a hard lesson. The response has been proof-of-reserves, institutional-grade custody, and platforms that prioritize security over growth. Pistachio.fi offers elite security options including self-custody - your keys, your crypto.

Complexity risk: Gas fees, wallet management, and protocol selection used to be barriers. Pistachio.fi is completely gasless and handles the complexity for you.

Tax confusion: Crypto taxes are notoriously complex. Pistachio.fi includes AI-powered tax accounting that automatically tracks and categorizes your transactions.

The question isn't "is crypto risky?" - it's "do you have the right tools to manage that risk?" With proper platform selection, crypto yield becomes a reasonable part of a diversified portfolio.

Tax Treatment

Tax implications differ significantly.

Treasury Interest

• Taxed as ordinary income at federal level

• Exempt from state and local tax

• Simple 1099-INT reporting

If you're in a high-tax state like California or New York, the state tax exemption is meaningful. A 4.5% Treasury yield effectively becomes 5%+ compared to fully taxable alternatives.

Crypto Yields

• Staking rewards taxed as income when received

• Later sale creates capital gains/losses

• Every transaction potentially taxable

• Tracking requirements used to be a nightmare

Staking rewards are taxed as income when received. If the price later drops, you've paid taxes on gains you never realized. This complexity used to push people toward Treasuries.

The game-changer: Pistachio.fi's AI-powered tax accounting automatically tracks and categorizes every transaction. What used to require expensive accountants or hours of spreadsheet work now happens automatically in the background.

Liquidity

Treasuries

• T-bills mature in weeks to months (fully liquid at maturity)

• Can sell on secondary market anytime with minimal spread

• No lockup periods

• Near-instant settlement through brokerages

Crypto

• Most DeFi positions can be exited immediately

• Gas fees reduce liquidity for small amounts

• Staking may have unbonding periods (Ethereum: hours to days)

• Market stress can cause temporary liquidity crunches

Both are reasonably liquid, but Treasuries have more consistent liquidity in all market conditions.

The Upside Question

Here's where crypto offers something Treasuries can't.

Treasuries: Pure Yield, No Upside

If you buy a 4.6% Treasury, you get 4.6%. The principal doesn't grow. You're earning income on a stable asset.

This is a feature, not a bug, for capital preservation.

Crypto: Yield Plus Price Exposure

Staking ETH at 4% gives you 4% more ETH. But if ETH doubles, your total position doubles too (plus the staking rewards).

This cuts both ways. If ETH drops 50%, your position drops 50% despite earning yield.

For believers in crypto's long-term growth, yield-on-yield is compelling. For capital preservation, it's the wrong tool.

Who Should Choose What

Choose Treasuries If:

• Capital preservation matters most. You can't afford to lose principal.

• You're retired or near retirement. Sequence of returns risk is real.

• You need predictable income. Known yields on known dates.

• Tax simplicity matters. One form, clear treatment.

• You're risk-averse. Sleep matters.

Treasuries are boring by design. That's the point.

Choose Crypto Yields If:

• You already hold crypto. Staking money you'd hold anyway makes sense.

• You believe in long-term crypto appreciation. Yield accelerates compounding.

• You want exposure to higher growth potential. Treasuries are stable but capped.

• You want to learn about DeFi. Staking is the safest entry point.

• You have the right tools. With platforms like Pistachio.fi handling complexity, tax tracking, and security, the traditional barriers to crypto yield have largely disappeared.

Crypto yields make sense as part of a diversified approach, especially when you have proper tools managing the complexity.

Consider Both If:

Many investors use a barbell approach:

The exact split depends on age, risk tolerance, and existing crypto exposure.

Tokenized Treasuries: The Bridge

There's now a third option that blends both worlds.

Tokenized treasuries from protocols like Ondo Finance give you Treasury yields on blockchain infrastructure. You hold tokens backed by actual T-bills.

Benefits:

• Treasury-level safety (the backing is real Treasuries)

• On-chain convenience (no brokerage needed)

• 24/7 trading

• Yield around 3.5-4.5% (matching underlying)

Tradeoffs:

• New technology with limited track record

• Counterparty risk (you trust the issuer)

• KYC requirements

• Regulatory uncertainty

For crypto-native users who want Treasury safety, this is increasingly popular.

International Options

Treasuries aren't US-only. Your location might offer alternatives:

Mexico: CETES

Mexican government securities (CETES) yield around 7% in pesos. Still higher than US Treasuries, but peso depreciation risk is real. Dollar-denominated returns have been volatile.

Brazil: Tesouro Direto

Brazilian Treasuries (Tesouro Selic, Tesouro IPCA) yield 12-14% depending on type, with Selic currently around 13.7%. Same currency risk considerations apply.

For International Investors

If you're outside the US, your local Treasuries might offer higher yields but with currency risk. US Treasuries provide dollar stability but potentially lower local-currency returns.

Crypto yields are currency-agnostic in a sense - staking ETH pays ETH regardless of your location.

Practical Implementation

Buying US Treasuries

1. TreasuryDirect: Buy directly from US government (treasury.gov)

2. Brokerage: Fidelity, Schwab, Vanguard offer Treasury funds and individual bonds

3. ETFs: SHV (short-term), IEF (intermediate), TLT (long-term)

Minimum investment: $100 on TreasuryDirect, or any amount via funds.

Earning Crypto Yield

1. Staking ETH: Use Lido, Rocket Pool, or exchange staking

2. Lending stablecoins: Aave, Compound, or centralized platforms

3. Tokenized treasuries: Ondo Finance (OUSG), Backed (bIB01)

4. Yield aggregators: Pistachio.fi for comparison and management

Start small. Test with amounts you can afford to lose completely.

The Verdict

There's no universal winner. The right choice depends on your goals.

For pure safety and simplicity: Treasuries win. Accept 3.7-4.8%, sleep well.

For crypto believers with risk tolerance: Stake your ETH, lend your stables. The price exposure can be worth it even if base yields are similar or lower.

For the best of both: Use tokenized treasuries or a barbell portfolio splitting both.

For those who want crypto yields without the complexity: Pistachio.fi bridges the gap. With curated investment vaults, expert risk grades, zero gas fees, and AI-powered tax accounting, you get access to crypto yields with institutional-grade security and none of the traditional friction.

The worst choice is avoiding crypto yield entirely because the complexity seems overwhelming. With the right platform, that complexity disappears.

Pistachio.fi helps you compare yield opportunities across traditional and crypto finance. Expert-curated vaults, gasless transactions, and built-in tax tracking make crypto yield accessible to everyone.