Tether, the powerhouse behind the world’s most widely used stablecoin USDT, is branching out into artificial intelligence (AI) with a game-changing announcement.
On October 27, 2024, at the Lugano Plan B event, Tether CEO Paolo Ardoino unveiled an innovative AI development kit that prioritises privacy and decentralisation.
This move reflects Tether’s strategy to diversify beyond stablecoin issuance and establish itself as a technology leader.
Tether’s 2025 Plans for AI Development
The AI development kit, set to launch in the first quarter of 2025, represents a significant step forward for Tether.
Paolo Ardoino first introduced the project in a detailed announcement during the Lugano Plan B event, followed by a tweet that provided insight into its technical features and vision.
Built on the open-source Holepunch framework, the development kit is designed to provide a seamless and modular platform for developers.
It supports a wide range of AI models, such as Marian and Llama, and operates on decentralised peer-to-peer (P2P) data structures for storing weights and fine-tuning data. These features make it uniquely capable of:
- Running Across Devices: From a $40 smartphone to high-performance systems equipped with Nvidia H100 GPUs, the kit is designed for universal compatibility.
- Ensuring Privacy: The P2P architecture processes data locally, safeguarding user information and aligning with global privacy regulations.
- Modular Functionality: Developers can customise solutions to meet their specific needs, from language translation to advanced analytics.
Ardoino demonstrated a translation app built using the kit, showcasing its ability to run locally on any device while maintaining 100% privacy. With plans to open-source the platform after thorough testing, Tether aims to foster a community-driven approach to innovation.
Empowering Developers with New Tools
The AI development kit is designed to address long-standing challenges in AI development, particularly for privacy-conscious industries like healthcare and finance.
Its decentralised architecture and modular design provide developers with the tools they need to innovate without compromise.
Developers will benefit from the kit’s ability to function across various hardware, allowing for flexibility and scalability in their projects.
By eliminating the reliance on centralised servers, the kit also enables faster deployment cycles, giving developers more time to refine and test their applications.
Moreover, Tether’s privacy-first approach ensures that sensitive data remains on the device, making the platform ideal for applications requiring strict regulatory compliance.
Whether it’s building tools for secure transactions, predictive analytics, or personalised user experiences, developers have a versatile and powerful foundation to work with.
AI and Crypto: A New Trend for 2025
Tether’s move into AI is well-timed, coinciding with the rapid growth of the AI and cryptocurrency sectors. The AI-related cryptocurrency market has been on a tear, with its total market capitalisation hitting $40.7 billion—a 14.7% surge in just 24 hours. This reflects the increasing demand for innovative solutions that combine AI and blockchain technology.
Tether itself continues to thrive, with its USDT stablecoin cementing its position as the most adopted digital asset in the crypto space.
The number of wallets holding USDT grew by a staggering 71% in 2024, reaching 109 million by the fourth quarter. These figures highlight the immense trust placed in Tether as a stable and reliable asset for crypto users.
Financially, Tether has had a record-breaking year, generating over $10 billion in profits. Half of these profits are earmarked for investments in AI and emerging technologies in 2025, further underlining the company’s commitment to innovation and long-term growth.
The combination of AI and crypto presents numerous opportunities. AI can enhance transaction security by identifying and preventing fraud in real time.
It can also streamline data management on decentralised platforms and offer personalised tools for crypto users, such as budgeting and portfolio optimisation. By venturing into AI, Tether is not only diversifying its offerings but also positioning itself as a leader in this transformative space.
Tether’s AI development kit is just one part of a broader strategy to diversify and expand beyond stablecoin issuance. Over the past year, the company has made strategic moves into sectors such as energy, payments, and telecommunications.
These efforts reflect Tether’s ambition to reduce reliance on its USDT product and become a multifaceted technology company.
The upcoming AI platform exemplifies Tether’s commitment to decentralisation and innovation. By focusing on privacy, scalability, and accessibility, the company is setting new benchmarks for how AI and blockchain can work together.
Conclusion
Tether’s announcement of its AI development kit marks a bold new direction for the company and the crypto industry.
With a focus on privacy and decentralisation, the platform promises to empower developers with cutting-edge tools to create innovative applications across industries.
Scheduled for launch in early 2025, this initiative highlights Tether’s ambition to lead in the cryptocurrency and AI sectors. As the lines between AI and blockchain continue to blur, Tether’s proactive approach positions it as a trailblazer in the rapidly evolving tech landscape.
