To earn interest on USDT or USDC, you lend your stablecoins through a lending pool or a lending service. Borrowers pay interest to use them, and you receive most of it while your balance stays pegged to the US dollar. In a wallet with built-in lending, it takes a few minutes: add USDT or USDC, choose the lending option, review the rate and confirm.
This guide walks you through the process step by step, covers typical rates, the risks to understand first, and how withdrawals work. You can do all of it from Virtex Wallet, in custodial or non-custodial mode. New to the concept? Read what is crypto lending first. This is general information, not financial advice.
How does earning interest on stablecoins work?
- You supply USDT or USDC to a lending pool.
- Borrowers deposit collateral, usually crypto worth more than the loan, and borrow from the pool.
- Borrowers pay interest while the loan is open.
- Your share of that interest accrues to your position, often every block or every day.
- You withdraw your stablecoins plus the interest whenever liquidity allows.
Because borrowers are over-collateralised, a falling crypto market triggers liquidations of their collateral, which repay lenders. That's the main protection lenders have.
What interest rate can you get on USDT and USDC?
Stablecoin lending rates have typically ranged from roughly 2% to 8% a year. They move constantly because they're set by supply and demand:
- More borrowers, fewer lenders: rates go up.
- More lenders, fewer borrowers: rates go down.
USDT and USDC can pay slightly different rates at the same time for the same reason. Rates in the app are live estimates, not fixed promises.
What $1,000 might earn in a year (simple interest, before any fees):
| Rate | Interest after 1 year |
|---|---|
| 3% | about $30 |
| 5% | about $50 |
| 7% | about $70 |
Examples only. Real rates change over the year, and interest that compounds will earn slightly more.
Step-by-step: earn interest on USDT in Virtex Wallet
1. Install the wallet and choose a mode
Download Virtex Wallet from Google Play. Then choose:
- Non-custodial mode: you hold the keys and lend from your own address. Positions are on-chain and verifiable. Back up your seed phrase first; see what is a seed phrase.
- Custodial mode: Virtex holds the funds and manages lending for you, with account recovery if you lose access. (Custodial mode isn't available in the EEA, the UK or the USA.)
2. Add USDT or USDC
Send stablecoins to your wallet on a supported network. Check the network carefully. USDT on Tron (TRC-20) and USDT on Ethereum (ERC-20) are different tokens on different chains. If you're moving from an exchange, follow our exchange-to-wallet transfer guide.
3. Keep some gas
In non-custodial mode, every lend and withdraw is a blockchain transaction. Keep a little of that network's coin (TRX on Tron, ETH on Ethereum) for fees.
4. Open the lending option
Open USDT or USDC in the app and choose the lending option.
5. Review before you confirm
Check:
- The current rate and whether it's variable
- Any fee taken from interest
- How withdrawals work and whether there's any waiting time
6. Confirm and track
Enter the amount, confirm, and your position appears in the app. Interest builds over time. In non-custodial mode, you can check your position on the network's block explorer.
How do you withdraw your USDT?
Open your lending position and choose withdraw. Your stablecoins plus earned interest return to your balance.
In non-custodial lending, withdrawals depend on the pool having free liquidity. If almost everything has been borrowed, you may need to wait until borrowers repay or new lenders deposit. High utilisation usually pushes rates up, which attracts both, so waits tend to be short, but they can happen.
In custodial lending, withdrawals follow the provider's terms, which the app shows before you confirm.
Either way, keep the USDT you need for everyday spending outside of lending.
What are the risks of earning interest on USDT?
- Smart-contract risk in non-custodial lending pools
- Provider risk in custodial lending (the reason several platforms froze withdrawals in 2022)
- Depeg risk if USDT or USDC trades below $1
- Liquidity risk when a pool is heavily borrowed
- Rate risk, since interest can fall at any time
Splitting funds between USDT and USDC spreads issuer risk a little. For more on how risks compare across earning methods, see crypto staking vs lending.
USDT vs USDC: which should you lend?
Both are dollar-pegged stablecoins from different issuers. USDT is the most widely used, especially on Tron. USDC is popular on Ethereum and other EVM networks. Rates differ from time to time with demand. Many people lend whichever they already hold, or split between the two.
Mistakes to avoid when lending stablecoins
- Sending on the wrong network. USDT TRC-20 sent to an ERC-20 address (or the other way round) can be lost or hard to recover. Check twice.
- Lending your spending money. Keep what you need for the next few weeks outside of lending.
- Running out of gas. In non-custodial mode you can't withdraw without a little TRX or ETH for the fee.
- Chasing the highest number. A rate far above the market usually means extra risk, or a scam.
- Sharing your seed phrase. No lending service ever needs it.
Can you earn interest on USDT without lending?
Not really. Because USDT can't be staked, lending (in some form) is where real USDT yield comes from. If you hold USDT on Tron, staking TRX for Energy is a useful extra: it doesn't pay interest on USDT, but it makes sending USDT much cheaper. See how to stake TRX.
Common questions
How much interest can I earn on USDT?
Rates have typically been in the low-to-mid single digits per year and change with borrowing demand. The app shows the current rate before you confirm.
Is interest on USDT paid daily?
In most lending pools, interest accrues continuously and is added to your position. How often it shows up depends on the platform.
Can I lose my USDT by lending it?
It's possible, through provider failure, smart-contract exploits or a depeg. That's why you should only lend what you can afford to have at risk.
Do I need to lock my USDT?
Many stablecoin lending options are flexible, with withdrawals whenever liquidity allows. Always check the terms before you confirm.
Is USDT interest taxable?
In many countries, crypto lending interest is taxed as income when received. See are staking rewards taxable for the general picture. This is not tax advice.
Start earning on your stablecoins: download Virtex Wallet on Google Play and learn more on the crypto lending page. This article is general information, not financial advice.
