The USDT-focused Layer 1 blockchain Stable, backed by Bitfinex, has officially launched StableEarn, a new institutional yield vault designed to offer holders of Tether’s USDT a way to earn returns tied to traditional financial assets. The product, built in partnership with Morpho (lending infrastructure), Gauntlet (risk modeling), Theo (yield strategies), and Utila.io (wallet security), routes USDT deposits into yield-generating strategies backed by real-world assets like U.S. Treasuries and gold, rather than relying on crypto token incentives or emissions common in DeFi.
StableEarn addresses a structural gap: Tether, which issues the world’s largest stablecoin with a supply of approximately $150 billion, retains all interest earned on its reserve assets and pays no native yield to USDT holders. In 2025 alone, Tether generated over $10 billion in profit from this spread. “USDT moves more value than any other stablecoin in the world, but putting it to work always had challenges when it came to competitive yields,” said Stable CEO Brian Mehler. “StableEarn changes that by bridging together institutional-grade yield and the chain built around USDT. The world’s largest stablecoin has a new home, and it’s on Stable.”
The vault leverages Morpho’s institutional lending architecture and Gauntlet’s risk parameters to deploy capital into products developed by Theo, which collaborates with partners like Standard Chartered’s Libeara and Wellington Management on tokenized Treasury and gold offerings (thUSD, thBILL, thGOLD). “StableEarn is what on-chain dollar yield looks like done right. USDT-native, institutional-grade, with returns generated by real-world markets,” said Theo CIO Iggy Ioppe.
The launch comes amid rising demand for yield-bearing stablecoin products as the total stablecoin market exceeds $311 billion and tokenized Treasury products have grown to $13.4 billion. Stable itself raised $28 million in a round co-led by Bitfinex and Hack VC, with participation from Franklin Templeton, before launching its mainnet last year.
