If you hold Bitcoin and don’t want to sell it, you can still put it to work.
In this post, I’ll show you how to use Bitcoin as collateral to borrow USDT (Tether), then convert that loan into HBD (Hive Backed Dollar), a blockchain-based stablecoin that pays 15% annual interest, with monthly payouts. It’s a simple way to earn passive income while keeping hold of your Bitcoin.
None of this is investment advice, however, and I am neither an investment professional nor an expert. These are simply my musings as I look at the options available to anybody who has accumulated some Bitcoin and who wants to put it to work without selling it.
Let me walk you through exactly how to do it
Step 1: Borrow USDT Using BTC as Collateral
Let’s say you have $2,000 worth of Bitcoin and use a lending platform called CoinRabbit to borrow $1,000 worth of USDT, using your BTC as collateral.
CoinRabbit is a custodial crypto lending service. No credit checks, no paperwork. Just send your BTC, lock it as collateral, and borrow a portion of its value in USDT (a stablecoin pegged to the US dollar). The loan is overcollateralized to protect against BTC price drops. It is best to borrow no more than 50% of your collateral to maintain a good margin of safety. That way, Bitcoin would have to drop a long way for the lender to liquidate your loan.
Keep in mind that Bitcoin is a deflationary asset, whereas stablecoins such as USDT are not. That means the price of Bitcoin is likely to keep on going up over the long term, so by not selling your Bitcoin you can still benefit if the price goes up.
Step 2: Swap USDT for HIVE Using SimpleSwap
Before taking this step, you will need to set up a Hive.io account. I suggest you use the frontend Ecency.com to do that because you can complete both Step 2 and Step 3 of the conversion process inside Ecency.
Next, you want to put your borrowed USDT to work. Here’s what I suggest: Use SimpleSwap.io to swap your 1,000 USDT for HIVE, the native token of the Hive.io blockchain.
SimpleSwap is a non-custodial service. Just choose what you want to swap (USDT → HIVE), paste in your Hive wallet address, and they handle the conversion.
Step 3: Convert HIVE into HBD on the Hive Blockchain
Once the HIVE arrives in your wallet, use the Ecency.io frontend to convert your Hive to 1,000 HBD.
What Is HBD, and Why Is It So Powerful?
HBD is a blockchain-based dollar-pegged stablecoin built into the Hive ecosystem. It runs on the Hive blockchain, which is decentralized, fast, and almost feeless.
But unlike most stablecoins, HBD pays you 15% annual interest when you deposit it into your Hive Savings account.
- Interest is paid monthly
- Funds remain under your control (no third-party platforms)
- There’s no staking lockup – you can withdraw in 3 days
It’s one of the highest passive income opportunities available for USD-pegged assets, especially appealing in today’s low-interest environment.
My End Result: Earn 15% While Keeping Your BTC
To recap:
- Set up a Hive.io account via Ecency.com
- Use $2,000 BTC as collateral to borrow $1,000 USDT on CoinRabbit.io
- Swap the USDT for HIVE on SimpleSwap.io
- Then convert your HIVE into 1,000 HBD on Ecency.com
- Now move your 1,000 HBD into HBD Savings, where it earns 15% per year, paid monthly
A thousand HBD delivers a yield of $12.50 per month, while your Bitcoin remains untouched. If the BTC price rises, you still benefit. As you pay off your USDT loan, the monthly interest payment quickly drops below the amount your HBD is earning each month. Also, as you pay off your loan, the margin of safety increases. And if Bitcoin goes up in value, once again, your margin of safety increases.
Why This Strategy Works
This kind of “triangular arbitrage” is possible because different parts of the crypto world offer different strengths:
- BTC = a deflationary asset offering long-term value storage
- USDT = stable liquidity
- HBD = high-interest savings
By combining them, you can unlock passive income without sacrificing future gains.
Final Thoughts
If you have Bitcoin but want to earn income without selling it, this strategy is worth exploring. You’ll need to be comfortable with:
- Using a lending platform like CoinRabbit
- Swapping tokens across different platforms with SimpleSwap
- Holding and using decentralized Hive blockchain assets such as HIVE and HBD
But once set up, the 15% interest on HBD can be a powerful tool for compounding income, especially when you’re working with money that was borrowed, not sold.
Cheers!
David Hurley
#InspiredFocus
P. S. You can follow me on the Hive blockchain @ https://peakd.com/@hirohurl
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