On May 5, 2025, Tether CEO Paolo Ardoino announced the company’s upcoming venture into artificial intelligence with the launch of a new platform, Tether AI. While this might appear to be a major shift from Tether’s traditional focus on stablecoins, it actually aligns with the company's broader strategy of expanding into decentralized technologies, privacy solutions, and support for digital assets.
The Coinpaper team delved into this new initiative, analyzing how it fits into Tether's evolving identity and its ambition to claim a stake in the growing AI industry.
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AI as a New Frontier
According to Tether’s announcement, Tether AI will be an open and modular "AI runtime environment." Designed to run independently of centralized cloud services or proprietary APIs, the platform will be compatible with a wide range of devices—from smartphones to embedded systems.
The project’s goal is to create a decentralized, peer-to-peer network of AI agents capable of communication, decision-making, and performing transactions, including those involving cryptocurrencies. This vision includes integration with Tether’s Wallet Development Kit (WDK), enabling non-custodial wallets that support USDT and Bitcoin. Through this system, AI agents can conduct payments directly, eliminating the need for third parties.
“Artificial intelligence is poised to revolutionize virtually every aspect of our lives, both in the real and digital worlds,” Ardoino stated.
Though detailed technical specifics have not yet been revealed, several AI-driven tools are already in the pipeline:
AI Translate – a multilingual chatbot translator;
AI Voice Assistant – a smart voice-based assistant;
Bitcoin Wallet Assistant – a tool for wallet management, including checking balances and sending funds.
These applications are being developed under Tether Data, an internal division established during the company’s 2024 restructuring. This team focuses on P2P technologies, AI solutions, and network architecture. One notable project, BrainOS, is intended to boost user cognitive efficiency.
Ardoino’s vision goes beyond technology—it’s ideological. His rhetoric reflects a desire to challenge centralized control by Big Tech companies, drawing inspiration from the science fiction of Isaac Asimov and his vision of embedded, ubiquitous AI. The goal is to make running AI models as easy and private as installing an app, with full user control, no hidden data collection, and no reliance on remote servers.
Importantly, the incorporation of cryptoassets into microtransactions between AI agents opens the door to a "machine economy"—a decentralized marketplace where autonomous systems trade services, computing power, and facilitate secure financial exchanges.
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Tether’s Expanding Ecosystem
Tether’s growing interest in AI can be better understood in the context of its financial and operational evolution. According to its Q1 2025 report, the company holds assets exceeding $149.3 billion, with more than $120 billion in U.S. Treasuries. The quarter’s net income surpassed $1 billion.
But this only scratches the surface. Over the past two years, Tether has evolved into a hybrid tech-finance entity, expanding beyond stablecoins into fintech, computing, and artificial intelligence.
Some of its ongoing or affiliated projects include:
Fizen – a crypto-payments platform supporting QR code-based transactions with real-time fiat conversion, aimed at underbanked regions;
OCEAN – a decentralized Bitcoin mining initiative promoting independence from major mining pools and boosting transparency;
XAUT – a gold-backed stablecoin that offers a hedge during periods of market volatility or inflation;
Be Water – a digital media and content platform that expands Tether’s presence in video and streaming;
21 Capital – a $3 billion crypto venture in collaboration with Cantor Fitzgerald, Bitfinex, SoftBank, and Tether, targeting strategic Bitcoin investments.
These investments suggest a clear desire for autonomy and diversification. As regulatory environments vary widely across regions, Tether is tailoring solutions to meet local needs—without relying on external capital to fund innovation.
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Regulatory Tensions in Europe
Despite its global success, Tether has faced regulatory hurdles, particularly in Europe. The Markets in Crypto-Assets (MiCA) framework, which came into effect in 2024, imposes strict licensing, reserve, and transparency requirements on stablecoin issuers operating in the EU.
Tether has refused to comply with these rules, leading to delistings of USDT from major European exchanges like Binance, Kraken, Coinbase, and Crypto.com. Ardoino criticized MiCA as a tool for promoting the digital euro and harming smaller banks.
“The MiCA license is very dangerous for stablecoins, and even more so for the small and medium-sized banking sector in Europe. I decided not to apply because I have to protect over 400 million users worldwide,” he stated.
However, USDT remains dominant in Asian, U.S., and Latin American markets. As such, while Europe poses a challenge, it does not threaten Tether’s global standing.
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AI Meets Blockchain: A Growing Trend
Tether isn’t alone in exploring the convergence of blockchain and artificial intelligence. Several major players are also building decentralized AI infrastructure:
Core Scientific is repurposing mining hardware for AI workloads;
Filecoin Foundation is working on decentralized storage for generative AI models;
Chainlink is building decentralized oracle networks to feed real-world data to smart contracts;
Bittensor is developing a decentralized network of neural networks that rewards model contributions.
These projects share a common vision: decentralized, transparent, and user-controlled AI systems. Tether AI fits neatly into this ecosystem, situated at the intersection of crypto-assets and intelligent software services.
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Conclusion: A Calculated Bet on the Future
Tether’s venture into AI is not just a bold experiment—it’s a strategic expansion backed by substantial resources and a long-term vision. By combining its financial strength, technological assets, and ideological stance against centralization, Tether is positioning itself as a leader in the emerging space where blockchain meets artificial intelligence.
If successful, Tether AI could lay the groundwork for a future where autonomous systems handle secure, private, and efficient digital transactions—shaping the next phase of interaction between humans, machines, and money.