How to Stake Tether: USDT Staking Guide 2025

As one of the first stablecoins and still the largest by market cap at over $143 billion, Tether USDT has become a staple in the crypto ecosystem. The token’s multi-chain coverage also provides unrivaled yield opportunities, primarily centered on lending markets. In this guide, we’ll explore the leading platforms for USDT staking. 

Options range from centralized platforms, such as crypto exchanges, to decentralized protocols that allow you to stake USDT using smart contracts to earn stable yields. Now a top-three cryptocurrency, USD Tether is in high demand. Let’s learn how to stake USDT to earn passive income while managing risk.

How to Stake Tether (USDT)

Staking Tether (USDT) can be a straightforward process, allowing you to earn passive income while managing your risk. Here’s a step-by-step guide on how to stake USDT:

Buy USDT

If you don’t already own USDT, you will need to purchase some from a cryptocurrency exchange or crypto provider. Choose a reputable exchange that supports USDT. For convenience, you may want to choose a staking method and platform before making your purchase. You will also need a wallet, such as Best Wallet.

Choose a Staking Method

Decide whether to stake your USDT through a centralized platform, such as a crypto exchange, or a decentralized protocol that utilizes smart contracts. Each method has its own set of risks and benefits, so it’s essential to understand the differences before making a decision. Do your research first, as staking often requires a time commitment.

Select a Staking Platform

Research and select a reputable platform that supports USDT staking. Consider factors such as the platform’s security, fees, and reputation in the crypto community. Later in the guide, we’ll discuss several Tether staking options.

Create an Account

Sign up for an account on your chosen platform. If you’re using a decentralized platform, you’d connect your crypto wallet rather than create an account.

Deposit USDT

If you choose a platform other than where you buy USDT, you’ll need to deposit the tokens on the new platform. Check the how-to section for specific instructions, and be aware of any minimum deposit requirements and time commitments.

Configure Your Staking Settings

Find the staking section on your chosen platform and select the USDT staking option. Each platform may offer different staking plans or options, so choose the one that best suits your needs.

Configure your staking settings, including the amount of USDT you want to stake and the duration of the staking period. Some platforms may offer flexible staking options, while others may require you to stake your USDT for a fixed period.

Start Staking USDT

Confirm your staking settings and start the staking process. The platform will use your staked amount of USDT to generate yields, similar to investing in a money market account.

Monitor Your Stake Position

Use the dashboard to track your staked USDT and the yields you are earning. Most platforms pay USDT staking yields in the same token and automatically compound your earnings.

What is USDT?

Tether (USDT) is a stablecoin, a type of cryptocurrency designed to maintain a stable value relative to a fiat currency, in this case, the US dollar. Each USDT is equal to one US dollar, using real-world assets like cash and bonds to back the token’s value. This stability makes USDT an attractive option for investors and traders who want to avoid the volatility common to other digital assets, such as Bitcoin or Ethereum.

USDT is issued by Tether Limited, a company based in the British Virgin Islands, and is available for transactions on multiple blockchain platforms, including Ethereum and Solana. Users can buy USDT through crypto exchanges or even some crypto wallets, such as Best Wallet.

As a stablecoin, USDT offers several benefits, including:

• Stability: USDT’s value is pegged to the US dollar, reducing the risk of price fluctuations.
• Liquidity: USDT is widely available and traded on many centralized and decentralized exchanges.
• Accessibility: USDT can be used on multiple blockchain platforms, including Ethereum, Solana, and TRON.

USDT’s stability and broad blockchain support make it ideal for several use cases. The token is often used in trading pairs, lending, or online or cross-border payments.

How Does USDT Staking Work?

The term staking has an alternative meaning in this context. To be clear, USDT does not support staking in the traditional sense.

Staking typically refers to supporting proof-of-stake (PoS) networks, such as Ethereum or Solana, by validating transactions or pledging tokens as collateral to ensure that your staked validator behaves honestly. In this scenario, stakers earn a yield in newly minted tokens (staking rewards).

However, many platforms also use the term staking to refer to locking tokens in a yield product or smart contract to earn a yield. USDT does not support PoS staking, so staking USDT refers to using your tokens to earn a yield in one of several ways.

• Depositing USDT into a yield program on a centralized exchange
• Lending USDT on a DeFi platform
• Depositing USDT into a DeFi vault

Let’s examine some of these ways to use USDT in staking.

Centralized USDT Staking

Centralized exchanges may offer “staking” for USDT or other digital currency or assets. In many cases, what’s happening under the hood is lending, with the yield coming from interest payments paid by borrowers.

However, some platforms may also use the capital to invest elsewhere, such as DeFi protocols to generate a yield. Note that in the example above from Binance, only one type of USDT staking product protects your capital. Read the fine print carefully.

DeFi Lending

Another common way to earn a yield centers on lending through decentralized finance (DeFi) platforms, such as Aave.

In this case, you would connect your crypto wallet to the platform and deposit USDT into a lending pool. Borrowers pay interest, which is then paid to stakers based on their proportional share of the lending pool. USDT is considered one of the safest assets to lend because its value remains stable.

DeFi Vaults

A DeFi vault can earn a yield in a number of ways, including lending or providing liquidity on a decentralized exchange (DEX), such as Uniswap.

These vaults typically offer simplified management compared to managing lending or liquidity positions yourself. Similar to staking USDT on centralized exchanges, it’s important to understand how the vault generated yields and whether your capital is at greater risk.

Wallet Staking

Cryptocurrency wallets, such as Best Wallet, may also offer in-app USDT staking. This might take the form of in-app decentralized apps (dApps) or staking tools, like the Best Wallet staking aggregator, which lets you compare rates in one place and stake directly from your wallet.

Staking Mechanics

In all of these cases above, however, you’re sending tokens you control in your wallet to another entity or protocol to earn a yield. In that sense, these forms of USDT staking are similar to PoS staking, in which you lock your tokens in a smart contract.

In short, you are staking USDT by committing your tokens to earn a yield. The expectation is that you’ll get your tokens back, plus interest. We’ll discuss staking safety in more detail later in this USDT staking guide.

USDT Staking Rates

APYs (Annual Percentage Yields) and USDT staking rates can vary depending on the platform, wallet, or exchange you use. Different providers offer varying rates, and rates may also change based on participation rates or deposit amounts.

Below, we compare USDT staking rates from various wallets and exchanges. Expect these figures to change daily or even more frequently.

Please note that these rates may not reflect the current rates. Additionally, platforms often charge a fee (typically 10%), although these fees are likely reflected in their USDT staking APY estimates.

When comparing USDT staking rates, also consider the following factors:

• APY (Annual Percentage Yield): The interest rate earned on your USDT over a year.
• Minimum deposit: The minimum amount of USDT required to start staking.
• Tiered rates: Some platforms offer different rates based on deposit thresholds.
• Lock-up period: The duration for which your USDT is locked in the staking program.
• Fees: Any fees associated with staking, such as management fees or withdrawal fees.
• Risk level: The level of risk associated with the staking program, such as the risk of default or liquidity risks.
• Type: The type of staking program, such as lending, vault, or staking.

A higher-than-average USDT staking APY could suggest a yield that’s unsustainable or may indicate additional risk. It’s also possible that all or part of the yield is paid in another token that’s much more volatile than USDT.

Best Crypto Staking Platform for 2025

For many crypto investors, DeFi USDT staking is the favored choice. Best Wallet meets all the criteria for self-custody, usability, and the ability to connect to the most popular staking dApps. This user-friendly mobile wallet supports transfers from exchanges or other wallets but also allows you to buy USDT within the wallet itself.

Multi-chain support and built-in bridge support mean you can hold and stake Tether on any of several chains that support the token.

WalletConnect support allows you to connect to dApps in an external browser, including top USDT staking options like Compound Finance or Aave and vaults like Yearn Finance. Best Wallet’s upcoming staking aggregator will allow you to easily compare USDT staking rates within the app and deploy capital to yield opportunities with a few clicks.

Best Wallet now supports more than 60 blockchains, including popular chains like Ethereum, Bitcoin, Solana, and BNB Smart Chain. This flexibility allows you to manage multiple types of crypto in one app and reallocate your holdings without leaving the app by using cross-chain swaps.

Advanced users want powerful features, and everyone appreciates a user-friendly interface. Best Wallet delivers both, with many more features planned for phases 3 and 4 of the project roadmap, including advanced trading, derivatives, and a browser extension that brings these powerful features to the desktop.

Where to Stake USDT

Choosing the best place to stake USDT depends on your preferences as well as a review of the rates, risks, and benefits. For example, crypto wallets like Best Wallet offer a convenient experience while also keeping your tokens safe from exchange-related risks. Let’s explore some of the leading options.

Crypto Wallets

Some wallets, such as Best Wallet and Trust Wallet, offer USDT staking through integrated access to DeFi platforms.

• Best Wallet provides easy access to tried-and-true DeFi protocols like Aave and Compound. The wallet’s upcoming staking aggregator will allow users to easily compare USDT staking rates and yields for other tokens.

Trust Wallet, like Best Wallet, supports WalletConnect. This feature makes it easy to connect to staking dApps in an external browser. You aren’t limited to the staking apps featured in the wallet.

All non-custodial crypto wallets give you control over your private keys. However, multichain wallets, like those above, allow you to bridge your USDT tokens to another network if you find a better opportunity.

DeFi Platforms

Decentralized finance platforms, such as Aave and Compound, offer USDT staking opportunities through their lending protocols. Both platforms are well-established and use a similar approach to staking. When you deposit USDT, you receive interest-bearing tokens. The exchange rate for these tokens changes as you accrue more interest earnings. Both platforms offer an easy-to-read dashboard that abstracts the complexities beneath the hood, providing a clear overview of deposits and earnings.

• Aave offers USDT staking alongside a growing number of other lendable assets. While yields may be slightly lower than some competing platforms at times, the Aave Safety Module provides a type of decentralized protection against losses due to market volatility.
• Compound Finance, on the other hand, may offer higher yields depending on market conditions. Some users also find the platform easier to use.

DeFi platforms offer a high degree of transparency and decentralization. However, they can also be more complex and may be vulnerable to smart contract risks. Compared to centralized platforms, DeFi protocols often provide higher yields, making them an attractive option.

Centralized Platforms

Centralized exchanges and platforms, such as Kraken and MEXC, offer USDT staking options through their exchange platforms. This provides a convenient option for USDT staking because you can put your newly purchased tokens to work in a few clicks. However, exchange staking brings some risks of its own, including risks related to exchange liquidity or insolvency.

• Kraken has earned a reputation for being among the most transparent exchanges. Staking USDT with the platform is fast and easy using the exchange’s “opt-in rewards.” With this opt-in program, you authorize a Kraken subsidiary to manage the funds for you in exchange for a yield. Notably, yields for flexible staking and locked staking with a 30-day commitment are often quite close – yet still competitive, giving you the freedom to choose which option is best for you.

• MEXC is one of the fastest-growing exchanges and offers some of the highest yields available for USDT staking. However, yields fall after reaching a $500 threshold. As another consideration, MEXC offers little clarity on how the yields are generated, possibly introducing safety concerns.

Centralized platforms offer a more traditional and user-friendly experience, with the added benefit of allowing you to trade and manage your assets in one place. However, they may also have higher fees and lower yields than DeFi platforms. For many, the choice between centralized and decentralized USDT staking centers on convenience versus platform-related risks.

Is USDT Staking Safe?

USDT staking, like any other investment or financial activity, carries some level of risk. One of the larger concerns centers on the lack of clear disclosures. Often, it’s unclear how yields are derived and what risks may be unknown. Safer options likely include staking opportunities that offer full disclosures. Let’s examine some of the potential risks of USDT staking.

Counterparty Risk

When you stake Tether, you’re essentially lending your assets to a third party for passive income, such as a decentralized finance protocol or a centralized exchange. If the counterparty defaults or becomes insolvent, you may lose some or all of your staked assets.

However, some platforms provide assurances. For example, Aave, a popular DeFi lending protocol, offers a user-funded insurance fund.

Smart Contract Risk

Many USDT staking platforms use smart contracts to manage the staking process. While smart contracts can be secure, they can also be vulnerable to bugs, exploits, or other issues that could result in losses. In 2024, more than $2 billion was lost to crypto hacks.

Liquidity Risk

If you need to withdraw your staked USDT quickly, you may face liquidity risks, such as limited market depth or high withdrawal fees. In short, you may not be able to withdraw if the funds are lent out.

Regulatory Risk

The regulatory environment for USDT and other cryptocurrencies is still evolving and may change in the future. Stablecoins face increased scrutiny by governments worldwide.

Platform Risk

When you stake Tether, you need to consider the security and reliability of the platform you’re using. If the platform is hacked, experiences technical issues, or ceases operations, you may lose access to your assets. This risk category affects both centralized and decentralized USDT staking options.

Mitigating USDT Staking Risks

To minimize these risks, take proactive steps:

• Research the platform thoroughly, including its reputation, security measures, and track record.
• Understand the terms and conditions of the staking program, including the interest rate, lock-up period, and any associated fees.
• Diversify your portfolio by staking your USDT across multiple platforms or using different staking strategies to minimize your exposure to any one specific risk.
• Regularly monitor your staked USDT and be prepared to adjust your strategy if market conditions or regulatory environments change.
• Consider using reputable and well-established platforms, and be cautious of platforms with poor reputations or unclear terms and conditions.

Conclusion

USDT staking provides a lucrative way to earn rewards on your USDT holdings. However, rates vary considerably from one platform to the next, influenced by factors like platform fees and supply/demand dynamics. DeFi platforms typically provide the best combination of transparency and yields, although it’s prudent to select a well-tested protocol.

Best Wallet provides easy access to these DeFi protocols, and the project’s upcoming staking aggregator promises to make connecting to the top DeFi opportunities even easier. The mobile app supports USDT staking on leading chains, expanding your available options.

See Also: Ronin Staking: How to Stake RON in 2025

References:

• Tether Transparency (tether.to)
• What is the Wallet Connect Network (walletconnect.network)
• Kraken Terms of Service (kraken.com)
• Safety Module  (aave.com)
• Crypto’s biggest hacks and heists after $1.5 billion theft from BybitCrypto’s biggest hacks and heists (reuters.com)

FAQs

What is the best wallet to stake USDT?

The best wallet to stake Tether is one that provides easy access to DeFi protocols, such as Best Wallet, which supports USDT staking on leading chains and offers a user-friendly interface. Leading DeFi platforms offer better transparency while often providing higher yields as well.

Does USDT have APY?

USDT itself does not provide an Annual Percentage Yield (APY). However, you can earn interest on your USDT holdings by staking your tokens on a reputable platform where they are used in lending or other profitable activities.

What is the staking rate for USDT?

USDT staking rates vary depending on the platform and demand, ranging from around 1% to 12% APY. DeFi platforms typically offer higher yields and better transparency on how the funds generate a yield.

Why you can trust 99Bitcoins

10+ Years

Established in 2013, 99Bitcoin’s team members have been crypto experts since Bitcoin’s Early days.

90hr+

Weekly Research

100k+

Monthly readers

50+

Expert contributors

2000+

Crypto Projects Reviewed

Read more

Jordan Blake

Jordan Blake is a dedicated writer with over fifteen years of experience in the technology and finance sectors. Known for his ability to simplify complex topics, he has earned a reputation as a reliable source of insightful and engaging content.... Read More

Read Jordan Blake Articles