Pendle PT and YT: how splitting yield works and how to book it

Pendle splits a yield-bearing token into a principal token and a yield token. Here is the mechanics and the policy choices each one forces.

2026-10-17 · 6 min read

If your treasury buys Pendle principal tokens (PT) for a fixed return, or holds yield tokens (YT), you are holding something closer to a zero-coupon note or a stream of future income than to the token underneath. That changes how you measure it, when you recognise income, and what you need to keep on file.

The three tokens: SY, PT and YT

Pendle starts by wrapping a yield-bearing asset, such as a staked or lending token, into a standard wrapper called SY (Standardized Yield). Depositing SY into Pendle mints equal quantities of PT and YT; to get the SY back before maturity you must hand in both [1][2].

Each pair carries a fixed maturity date. One PT entitles the holder to redeem one unit of the market's accounting asset at maturity. One YT entitles the holder to the yield on one unit of that accounting asset until maturity, claimable as it accrues [1]. Pendle's developer documentation says YT also collects the rewards and points attached to the asset up to expiry [2].

Note the phrase accounting asset. It is the unit the yield is measured in, which is not always the token you deposited. Pendle's own sUSDe example shows a PT that redeems for the value of one USDe, delivered via the SY wrapper [1]. Your records should capture both: the token you actually receive and the unit the claim is denominated in.

Why PT trades at a discount and accretes to par

Because the yield has been stripped out and sold separately, PT trades below the accounting asset, and the gap is the buyer's return if held to maturity. Pendle describes this as working like a zero-coupon bond, with the PT price closing the gap over time until it equals the underlying at maturity [3]. The holder can still sell before then, but at whatever the market price is on the day, so the fixed return is only locked in if the position is held to maturity [3].

Pendle quotes the market's price for the yield as an implied APY. It is set by supply and demand for PT and YT rather than by the underlying protocol's actual yield, and buying PT locks in roughly that rate [4]. The documented formula is shown below.

What happens at maturity

After expiry only PT is needed to redeem, and YT stops earning, so its value falls to zero [1][2]. Unclaimed interest and rewards are not paid out automatically when SY is redeemed; they are claimed through a separate call, so a YT holder can have earned income sitting in the contract that has not yet reached the wallet [2]. Reconcile claimed amounts against what the contract shows as due.

Accounting: the policy choices

There is no PT- or YT-specific guidance from the FASB, IASB, IRS or HMRC that we are aware of as of October 2026. Treatment therefore rests on general principles and on facts you should document.

• Scope under US GAAP. ASU 2023-08 fair value accounting applies only to crypto assets that do not give the holder enforceable rights to or claims on underlying assets [5]. A PT is designed as a claim on a fixed amount of the accounting asset at maturity, so many entities will conclude it falls outside that scope and needs another model. Reach that view with your auditor; it is not settled.
• Measuring PT. Two common approaches: treat PT like a discounted instrument and recognise the discount as yield over the term, or carry it under your general digital-asset policy and recognise the difference at sale or redemption. The first better reflects the economics if you intend to hold to maturity; the second is simpler but can push all the return into one period.
• YT income. Claimed interest and rewards are usually recognised as income when received or when the entity controls them. YT itself is a wasting asset: its carrying amount has to reach zero by maturity, either through amortisation or a loss on expiry.
• Minting a pair. Splitting SY into PT plus YT may be treated as a non-event (allocate the SY carrying amount across PT and YT by relative fair value) or as an exchange. Pick one and apply it consistently.
• UK tax. HMRC's DeFi guidance looks at whether a return is more like interest (fixed in advance, compensation for the use of assets) or like a capital gain (uncertain, realised through disposal), and says no single factor decides [6]. A PT bought at a known discount has features of both, so take advice before choosing income or capital treatment.

What to do

• For every PT or YT position, record the market address, maturity date, accounting asset and SY wrapper.
• Decide and write down your measurement policy for PT (accrete or not) and YT (amortise or expense at expiry) before period end.
• Keep the implied APY and PT price at purchase as evidence of the discount you are accreting.
• Reconcile claimed YT interest and rewards to the contract's due amounts each period.
• Diarise maturities: redeem promptly, and confirm YT balances are written down to zero.

Sources

1. Chapter 2: Yield Tokenization Basics (Pendle)
2. Yield Tokenization (Pendle (developer docs))
3. Chapter 3.1: Fixed Yield on Pendle (Pendle)
4. Chapter 5: Important Concepts in Yield Trading (Pendle)
5. 2.3 Crypto Assets Within the Scope of ASU 2023-08 (Deloitte DART)
6. CRYPTO61214 - Decentralised Finance: Lending and staking: Determining the nature of the return (HMRC)

General information for finance teams, current as of publication. Not legal, tax or accounting advice.

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