Stable, a USDT-native blockchain, has launched StableEarn, a treasury management product designed to let USDT holders earn yield without moving outside the Stable ecosystem.
The first vault is live on Morpho.
It is curated by Gauntlet and backed by Theo’s real-world asset products.
Theo was founded by quantitative traders from Optiver and IMC and provides tokenized exposure to Treasuries, gold carry, and delta-neutral gold derivatives.
The product targets neobanks, fintechs, payment processors, and individual users holding idle USDT balances.
Stable said the vault routes USDT deposits into Theo-linked strategies including thUSD, thBILL, and thGOLD. The company said the yield comes from real-world market activity rather than token incentives.
“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,” Stable CEO, Brian Mehler, said in a statement shared with AlexaBlockchain.
“StableEarn changes that by bringing together institutional-grade yield and the chain built around USDT,” Brian added.
USDT yield becomes the next stablecoin battleground
The launch comes as stablecoin competition shifts from payments and liquidity into yield distribution.
USDT remains the largest stablecoin by market value. CoinDesk’s April 2026 stablecoin report said USDT had reached about $190 billion in market capitalization, with 59.2% of stablecoin market share and 73.6% of centralized exchange trading volume.
That scale has made Tether one of the biggest beneficiaries of higher interest rates.
Tether reported $1.04 billion in net profit for Q1 2026 and said it held nearly $192 billion in total assets against about $183.5 billion in liabilities. Most of its reserves were held in U.S. government-backed instruments, according to the company’s reported figures.
StableEarn is trying to redirect part of that yield opportunity toward users and institutions holding USDT.
That distinction matters.
Stablecoin issuers have historically captured the income generated from reserves. Users received the convenience of digital dollars, while issuers earned returns from Treasuries, repo markets and other reserve assets.
New U.S. stablecoin rules have made this issue more important.
The GENIUS Act, enacted in July 2025, created a U.S. framework for payment stablecoins but prohibits stablecoin issuers from paying interest or yield directly to holders. Legal analysis from Latham & Watkins noted that the law does not explicitly prohibit affiliate or third-party arrangements offering yield-bearing products.
That leaves room for products like StableEarn to position themselves as third-party yield infrastructure rather than issuer-paid interest.
The regulatory line is still evolving.
The Office of the Comptroller of the Currency has proposed rules that could expand scrutiny around issuer-linked yield arrangements, including some third-party or affiliate structures.
Morpho and Gauntlet bring DeFi risk infrastructure
StableEarn’s first vault is built on Morpho, a decentralized lending protocol that has become a popular venue for curated lending markets.
Gauntlet is serving as the vault curator.
Gauntlet began curating Morpho vaults in early 2024 and later said it was managing more than 30 vaults across Ethereum, Base and Polygon. Its role is to set risk parameters, collateral rules and market allocation logic for vaults.
That curation layer is central to the product’s institutional pitch.
Rather than sending USDT into a broad, open lending pool, StableEarn uses a managed vault structure. The aim is to provide clearer risk boundaries for fintechs and payment companies that may not want direct exposure to unstructured DeFi lending markets.
Theo brings the real-world asset side of the stack.
In July 2025, Theo announced a strategic collaboration with Standard Chartered’s Libeara and FundBridge Capital to expand access to a U.S. Treasury strategy sub-managed by Wellington Management.
Stable and Theo also committed more than $100 million to ULTRA, a Libeara-backed tokenized U.S. Treasury fund managed by FundBridge Capital and Wellington Management, according to an earlier announcement from Libeara.
That gives StableEarn a clearer link to traditional yield sources, rather than relying only on crypto-native borrowing demand.
“StableEarn is what onchain dollar yield looks like done right,” said Iggy Ioppe, CIO of Theo. “USDT-native, institutional-grade, with returns generated by real-world markets. The future of crypto is real yield from real markets, delivered natively where capital already lives.”
StableEarn shows how stablecoin infrastructure is moving beyond settlement
For years, USDT’s advantage has been liquidity.
It is widely used across exchanges, payment corridors and emerging markets. But the yield generated from the assets backing stablecoins has mostly remained with issuers or specialized institutional products.
StableEarn is an attempt to create a USDT-native yield layer for companies already using USDT as working capital.
For neobanks and payment processors, that could make stablecoin balances more productive. Instead of leaving idle USDT on exchanges or wallets, they can route balances into vaults linked to Treasuries and other market-neutral strategies.
The product also reflects a broader shift in tokenized real-world assets.
Tokenized U.S. Treasury products have become one of the fastest-growing categories in onchain finance. CoinDesk reported in March 2026 that the tokenized Treasury market had reached a record $11 billion, with Circle’s USYC growing to $2.2 billion and surpassing BlackRock’s BUIDL fund.
Ondo Finance, BlackRock, Franklin Templeton, Circle and Ethena have all pushed versions of tokenized yield or dollar-linked products.
Ondo’s USDY is structured as a yield-bearing token backed by Treasury bills and bank demand deposits, though it is not offered to U.S. citizens.
Ethena’s USDe takes a different route.
It uses a synthetic dollar model backed by crypto assets and short futures positions, with yield available through staked USDe. Its rapid rise showed strong demand for crypto-native dollar yield, although its supply has also been volatile during market cycles.
StableEarn sits somewhere between those models.
It uses USDT as the deposit asset, Morpho as the lending venue, Gauntlet as the curator, and Theo as the RWA strategy provider. That makes it less like a new stablecoin and more like a yield layer attached to the world’s largest existing stablecoin.
The opportunity is large, but so are the risks.
Tokenized Treasuries and market-neutral strategies can reduce dependence on speculative token rewards. Still, users remain exposed to smart contract risk, vault-design risk, collateral risk, liquidity risk and regulatory uncertainty.
That is why StableEarn’s institutional pitch depends less on headline yield and more on whether its risk controls, collateral disclosures and redemption mechanics can stand up during stressed markets.
The above article “Stable Launches USDT Yield Vault With Theo on Morpho” was first published on AlexaBlockchain. Read the complete article here: https://alexablockchain.com/stable-launches-usdt-yield-vault-with-theo-on-morpho/
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