Tether's Open-Source AI Platform to Support Bitcoin and USDT Payments

5 months ago

KEY FACTS: Tether has launched Tether AI, an open-source, decentralized AI platform that integrates Bitcoin and USDT payments, as announced by CEO Paolo Ardoino recently. Designed to operate across diverse hardware without centralized control, Tether AI leverages Tether’s Wallet Development Kit to enable a global network of AI agents to autonomously execute transactions, such as smart contract actions and API payments, in a censorship-resistant environment.

Source: Paolo Ardoino/ X

Tether's Open-Source AI Platform to Support Bitcoin and USDT Payments

Tether, the issuer of the world’s largest stablecoin USDT, has announced the launch of Tether AI, an innovative open-source AI platform designed to integrate seamless cryptocurrency payments. The innovation was unveiled by Tether’s CEO, Paolo Ardoino, on May 5, 2025, through an X post. The platform aims to redefine the intersection of AI and blockchain technology by enabling Bitcoin and USDT transactions within a decentralized, peer-to-peer network of AI agents. This development will mark Tether’s ambitious entry into the rapidly growing $25 billion crypto-AI sector, positioning the company as a trailblazer in merging financial technology with autonomous systems.

http://tether.ai coming soon
Source

Tether AI, as described by Ardoino in a series of posts on X, is a “fully open-source AI runtime” engineered to operate across diverse hardware and devices without relying on centralized control points or API keys. This design philosophy emphasizes decentralization and censorship resistance, aligning with the ethos of blockchain technology. The platform is envisioned as a modular and composable system, capable of adapting and evolving to meet the needs of various applications. At its core, Tether AI integrates Tether’s Wallet Development Kit (WDK), a modular software toolkit introduced in November 2024, which enables developers to embed non-custodial wallets for Bitcoin and USDT into any app, website, or device.

Ardoino’s announcement highlighted the platform’s potential to create a global network of “billions of AI agents” operating on a peer-to-peer basis. These agents, empowered by Tether AI’s infrastructure, could autonomously perform tasks such as executing smart contract actions, paying for APIs, or monetizing AI services on-chain. Tether aims to facilitate real-world transactions without intermediaries, opening new possibilities for autonomous systems in industries ranging from finance to logistics by embedding cryptocurrency payments directly into AI models. This vision aligns with Tether’s mission to expand the utility of its stablecoin beyond traditional crypto trading and into real-world applications.

Tether’s entry into AI follows earlier indications of the company’s interest in this space. In February 2025, Ardoino previewed “Tether Data,” a suite of applications including AI Translate, AI Voice Assistant, and an AI Bitcoin wallet assistant, hinting at the company’s plans to integrate AI with its cryptocurrency ecosystem. The launch of Tether AI builds on these efforts, positioning the company to compete in a sector that has attracted significant attention from tech giants and blockchain innovators alike.

The announcement comes at a time when Tether’s dominance in the stablecoin market remains unchallenged. As of May 5, 2025, USDT boasts a market capitalization of $240 billion, accounting for over 65% of the global stablecoin market share, according to data from Coingecko. This financial clout, coupled with Tether’s extensive holdings of over $120 billion in U.S. Treasuries, provides the company with the resources to pursue ambitious projects like Tether AI.

Tether’s entry into the AI sector also coincides with the season where stablecoins are increasingly viewed as critical infrastructure for enabling seamless transactions in emerging technologies. Ardoino has previously emphasized USDT’s role as a “stable, efficient, and accessible on-ramp to the global economy,” particularly in emerging markets where 37% of users employ the stablecoin for savings and 30% for cross-border remittances. The integration of USDT and Bitcoin payments into Tether AI is the company's effort to extend this utility to autonomous AI systems and also transform how value is exchanged in decentralized networks.

Meanwhile, the Tether company has faced scrutiny over its regulatory compliance and transparency in the past, including a 2021 settlement with the New York Attorney General for $18.5 million over allegations of misrepresenting its reserves. While Tether now publishes quarterly attestation reports and is reportedly engaging a Big Four accounting firm for a full audit, lingering concerns about its operations could impact the adoption of Tether AI, particularly among institutional users.

Additionally, the broader regulatory landscape for stablecoins remains uncertain. Tether’s decision to forgo registration under the European Union’s Markets in Crypto-Assets (MiCA) framework led to the delisting of USDT on major exchanges like Binance and Kraken in the European Economic Area. Ardoino has argued that MiCA’s requirements, which mandate significant reserve holdings in uninsured bank deposits, pose risks to stablecoin issuers and their users. This stance has sparked debate about Tether’s ability to navigate global regulations while pursuing its AI ambitions.

In the United States, Tether is exploring opportunities to launch a U.S.-focused stablecoin by late 2025 or early 2026, contingent on stablecoin legislation. Ardoino has expressed confidence in Tether’s ability to compete with domestic payment services like PayPal’s CashApp, citing the company’s cooperation with law enforcement and its growing influence in Washington, D.C. However, the success of Tether AI in the U.S. market will likely depend on the company’s ability to address regulatory concerns and build trust among developers and enterprises.

Tether AI represents a significant innovation converging transformative technologies, cryptocurrency, and artificial intelligence, to reshape global economies. Tether is laying the groundwork for a new paradigm of decentralized, autonomous systems by enabling AI agents to conduct transactions using Bitcoin and USDT. The platform’s open-source nature and lack of centralized control points could attract developers seeking to build censorship-resistant applications, while its integration with Tether’s WDK offers a practical framework for embedding crypto payments into AI-driven workflows.

Information Sources:

If you found the article interesting or helpful, please hit the upvote button and share for visibility to other hive friends to see. More importantly, drop a comment below. Thank you!

This post was created via INLEO. What is INLEO?

INLEO's mission is to build a sustainable creator economy that is centered around digital ownership, tokenization, and communities. It's built on Hive, with linkages to BSC, ETH, and Polygon blockchains. The flagship application, Inleo.io, allows users and creators to engage & share micro and long-form content on the Hive blockchain while earning cryptocurrency rewards.