Earn By Lending Out Your Tether (USDT)

Last Updated on August 14, 2025 by Olga Davis

There are numerous ways to make money with cryptocurrencies, but they all lack predictability and stability. Even though a lending service or yield farming platform offers you a high annual percentage yield (APY), you can never be certain that this is exactly how much you will make because coin prices fluctuate so much. You might even lose money if an asset’s value declines.

Such a problem will never arise if you lend Tether because you will know precisely what yields you will receive in USD and when. In this article, you will discover what Tether lending is and how to make money from it.

USDTUSD chart. Source: www.tradingview.com

What is Tether (USDT)?

In the stablecoin category, which includes digital assets whose value is based on a fiat currency, Tether (USDT) is one of the most popular cryptocurrencies. This peg in USDT’s case is 1:1 to the US dollar. Every token, according to the issuing company, is supported by reserves that are enough to fully redeem it for one dollar.

Combining the advantages of cryptocurrencies and traditional money is Tether’s main goal. It makes it possible to transfer and store value digitally without experiencing the high volatility that most crypto assets do. Because of this, traders and investors frequently use USDT to protect their capital during downturns or to lock in profits at market peaks. Tether is a crucial tool in the global cryptocurrency ecosystem because of its stability, high liquidity, and ease of exchange.

Tether: Pros and Cons

Pros:

1. A really popular stablecoin with a lot of exposure
2. Large capital and a big community
3. Secure, stable, and way less volatile than other cryptocurrencies
4. Fast transactions on the ethereum blockchain
5. Fiat reserves

Cons:

1. High fees (if you’re using erc20)
2. Centralized, which is against the principles of crypto
3. Controversial management

What is Tether Lending?

Similar to putting money into a bank savings account, Tether Lending is the practice of depositing your USDT (Tether) into a lending platform in exchange for interest. However, many cryptocurrency lending platforms provide noticeably higher returns than traditional banks. For instance, CoinRabbit yields of about 10% APY (Annual Percentage Yield).

The procedure is simple:

1. Fund the lending platform with USDT.
2. Your funds are lent out to borrowers or used in yield-generating activities.
3. Interest is paid to your account on a regular basis; it is frequently calculated daily.

One of the key differences from traditional finance is the ease of access. For instance, CoinRabbit doesn’t need verification, a lot of paperwork, or registration. As a result, customers can start earning interest immediately without completing the bank’s procedures.

And unlike staking, where you freeze your tokens for a considerably long time, CoinRabbit’s USDT lending platform gives you the flexibility to:

• Withdraw your tokens, in whole or partially, anytime
• Add more funds to increase your interests.
• Open multiple accounts. 

Tether Lending: Pros and Cons

Pros:

1. It’s a great way of passively making money of your assets
2. Much less risk than staking via other companies
3. Stable monthly income independent of market movements
4. Lending doesn’t affect your main deposit, if the market fluctuates
5. The process is handled by an expert company who will help you with the technical issues you might run into

Cons:

1. You will lose some liquidity
2. You need to trust and research the service you’ll use before doing a deposit
3. Although lending is a pretty safe method of passive income on crypto, you still need to watch the market for sudden movements

Why is Tether The Best For Lending?

Your profits when lending most cryptocurrencies—aside from stablecoins—depend on both the market price and the interest rate.

For instance:

1. At 5% APY, you lend one Ethereum.
2. You will have 1.05 ETH after a year.
3. The dollar value of your holdings will actually decrease if the price of ETH drops by 4.76% or more, so even though you made more ETH, you might wind up losing money.

It’s different with Tether (USDT). Its value remains near $1 since it is based on the US dollar. This implies that your monetary returns are predictable. For instance, you know that, regardless of changes in the cryptocurrency market, you will make roughly $100 over the course of a year if you deposit $1,000 USDT at 10% APY.

How To Find The Best Platform To Lend Tether?

• Evaluate their APY. Usually, it’s about 2-3%. On CoinRabbit, we offer 5%, so if you stake $10,000, you will earn $500 in a year.
• See if you have to freeze your tokens. On CoinRabbit, you don’t — withdraw your deposit at any time you want. 
• Look at the limits — minimum and maximum amounts that you can deposit. On CoinRabbit, these are $100 and $1,000,000.
• No verification is needed. On CoinRabbit, you don’t have to verify anything to start earning. We only assess the legitimacy of the funds you want to deposit, but this is done automatically.

How To Lend Tether? A Short Guide

The whole process will only take you about 10 minutes:

1. Go to CoinRabbit.
2. Use the calculator to estimate how much you want to deposit: 

3. After you’ve clicked “Start Earning”, verify your phone number to be able to track your deposit, and confirm:

4. Send the deposit to the address provided: 

5. You’re all set! The yields will start accumulating in 24 hours. To track your deposit, click “My Earnings” in the upper right corner of the page and log in with your mobile phone/email. There, you can see how much interest you’ve earned, increase your deposit, create a new one, or withdraw.