USDT not only stability, but also income: Tether's new move

Tether today introduced the Yield program for USDT holders - a mechanism that allows them to earn passive income of up to 4% per annum by placing reserve funds in highly liquid short-term debt instruments. The new product is built into the familiar wallet vault and does not require additional verification, which simplifies access for market participants. To connect, just go to the balance management section and enable Yield in a couple of clicks without downloading additional applications or going through KYC again.

Attestation of reserves conducted by an independent audit firm on a quarterly basis showed that more than 92% of USDT's assets are cash and short-term obligations of the U.S. Treasury Department, with the remaining 8% coming from highly rated corporate securities. Reports approved by regulators in several jurisdictions confirm the ability to cover all liabilities under any outflow scenarios, which increases the confidence of holders and reduces the risk of market shocks.

The income distribution mechanism is based on weekly repo transactions for securities with an average maturity of about seven days and daily portfolio balancing through exchange traded venues. Asset management is algorithmic - when interest rates change, reallocation occurs automatically with a delay of no more than 24 hours. The spread between supply and demand for repo contracts is minimized due to an optimized liquidity management model.

Against the backdrop of US regulators preparing legislative initiatives on stablecoins, Tether's proposal demonstrates the industry's willingness to increase transparency and comply with regulations being debated in Congress. Disclosure of the exact structure of investments and automation of reporting allow market participants to analyze risks and compliance with the standards of safe custody of capital.

Institutional investors have shown active interest in the program: several large funds, including hedge funds and pension funds, have indicated their intention to commit up to USD 500 million to participate in Yield. This underscores the importance of USDT as a hedging tool in the face of high market uncertainty and a wide spread between bank deposit rates and ETF yields.

The program is designed for integration into the DeFi ecosystem: the API supports ERC-20 standards and facilitates connection to protocols such as Uniswap, Aave and others. JavaScript and Python libraries are available for developers, and smart contracts route funds between liquidity pools, providing flexibility and automation of strategies.

Industry experts estimate that total funds in the Yield pool could exceed USD 3 billion during the first quarter and reach USD 5 billion by the end of the year. VAR models and stress tests confirm the stability of the portfolio structure and its ability to withstand extreme macro-financial fluctuations, which creates favorable conditions for long-term investors.

The new feature sets a precedent in the world of stablecoins and launches the era of income-generating stable assets - now USDT becomes an instrument not only for value preservation, but also for efficient yield management without losing nominal stability. The emergence of such a solution may stimulate the release of similar products by competitors and accelerate the formation of standards for income-generating stablecoins.