Stable Launches Institutional USDT Yield Product Tied to Treasuries, Gold RWAs

Stable, a Layer 1 blockchain project built for Tether's USDT, has launched an institutional yield product designed to let USDT holders earn on-chain returns through real-world asset-linked products tied to US Treasuries and gold.

The Block reported on May 26 that Bitfinex-backed Stable had introduced the new product, called StableEarn, for USDT holders.

StableEarn is designed to let USDT holders generate returns through real-world asset-based products offered by Theo. Those products draw on yield structures linked to traditional assets including US Treasuries and gold.

"StableEarn is what on-chain dollar yield should look like," Theo Chief Investment Officer Iggy Ioppe said. "It is a USDT-native, institutional-grade product, and the yield is generated in real-world markets."

Theo has been developing RWA products including thUSD, thBILL and thGOLD in partnership with Standard Chartered's Libeara and Wellington Management. StableEarn links that suite of products to a USDT-based yield strategy.

Stable launched its mainnet after raising $28 million in a funding round jointly led by Bitfinex and Hack VC last year. Franklin Templeton also participated in the round.

Stable Chief Executive Officer Bryan Meller said earning competitive yield on USDT had been difficult. StableEarn combines institutional-grade yield with a chain built around USDT, he added.

StableEarn is built on Morpho, with risk parameters managed by Gauntlet. Its deposit structure does not rely on token incentives or emissions rewards commonly used in some decentralized finance yield programs. Instead, it routes USDT deposits into yield-generating products developed by Theo.

The launch underscores the growing institutionalization of stablecoin yield products. With USDT the world's largest stablecoin, combining on-chain deposit structures with yield sources tied to real-world assets such as Treasuries and gold could broaden the ways institutional investors use stablecoins.