Tether-focused chain Stable launches USDT institutional yield product

Stable, the USDT-dedicated Layer 1 blockchain project backed by Bitfinex, said Tuesday it has launched a new yield product for holders of Tether's stablecoin.

Dubbed StableEarn, the product is designed to give (USDT) holders an additional option for capturing yield. With StableEarn, holders can earn yield through a suite of real-world asset products, offered by Theo, that are tied to assets like Treasurys and gold, according to a statement.

"StableEarn is what onchain dollar yield looks like done right,” Theo CIO Iggy Ioppe said. "USDT-native, institutional-grade, with returns generated by real-world markets." Theo works with partners like Standard Chartered's Libeara and Wellington Management on RWA products like thUSD, thBILL and thGOLD."

Tether-issued USDT is the world's largest stablecoin. Last year, Stable launched its mainnet after raising $28 million in a round co-led by Bitfinex and Hack VC, with participation from many other investors, including Franklin Templeton.

Stable CEO Brian Mehler said that "putting [USDT] to work always had challenges when it came to competitive yields," but "StableEarn changes that by bringing together institutional-grade yield and the chain built around USDT."

StableEarn is built on Morpho with risk management parameters curated by Gauntlet, the companies said. The vault structure routes USDT deposits into yield-generating products developed by Theo rather than relying on crypto token incentives or emissions commonly used in some DeFi yield programs.

Vaults are automated smart-contract-based pools that deploy deposited digital assets into strategies designed to generate returns.