Stable, a Layer 1 blockchain built exclusively for USDT, has introduced StableEarn—a yield vault that offers institutional-grade returns linked to US Treasuries and gold. This new product enables USDT holders to earn passive income without shifting their assets to other stablecoins.
The vault was developed in collaboration with Morpho for lending infrastructure, Gauntlet for risk assessment, Theo for yield optimization, and Utila.io for secure wallet management. Brian Mehler, CEO of Stable, highlighted that despite USDT moving more value than any other stablecoin, generating competitive yields has been challenging. StableEarn aims to bridge this gap by combining institutional-grade returns with a blockchain tailored for USDT.
Currently, USDT provides no native yield to its holders, as Tether retains the interest spread from its reserve holdings. This has created demand for third-party yield products. StableEarn channels USDT into strategies backed by real-world assets, vetted by Gauntlet’s risk models, offering a lower-risk alternative to DeFi-native yield products.
Theo’s CIO, Iggy Ioppe, described StableEarn as a well-executed on-chain dollar yield product that is USDT-native and institutional-grade. The launch comes as the stablecoin market expands, with USDT supply reaching approximately $150 billion. Yield-bearing stablecoins have grown significantly, and tokenized Treasury products now represent a substantial portion of the market.
StableEarn is the first vault designed specifically for USDT within its native blockchain, eliminating the need for bridging to other networks. Morpho’s lending infrastructure, widely used by DeFi treasury managers, underpins the vault. The product also aligns with evolving regulatory frameworks, such as the GENIUS Act, which imposes compliance obligations on stablecoin issuers and related products.