Tether Launches Decentralized AI Platform With Native Crypto Payments

Tether AI, an open-source, decentralized artificial intelligence (AI) platform, has been launched by Tether, the company behind the USDt (USDT) stablecoin. Unlike traditional AI services that rely on centralized servers and require application programming interface (API) keys, Tether AI operates on a distributed peer-to-peer (P2P) network. This design enhances privacy, autonomy, and resilience, as it can function on any hardware, including mobile, desktop, or edge devices, without centralized control or a single point of failure.

One of the core innovations of Tether AI is its integration with cryptocurrency infrastructure. It natively supports Bitcoin (BTC) and USDt payments using Tether’s Wallet Development Kit (WDK), enabling seamless onchain transactions. This makes Tether AI one of the first AI platforms to offer direct crypto payment functionality at the protocol level. According to Paolo Ardoino, CEO of Tether AI, the platform is a “fully open-source AI runtime, capable of adapting and evolving on any hardware and device, no API keys, no central point of failure, fully modular and composable, WDK-infused to enable USDT and Bitcoin payments.”

Tether AI is built around the concept of “personal infinite intelligence,” which envisions customizable AI agents tailored to individual user needs and device capabilities. Developers can leverage Tether’s open-source WDK to create mobile, desktop, and web wallets with complete self-custodial control. The platform enables native payments in USDt and Bitcoin to be processed directly over a peer-to-peer network, eliminating reliance on centralized payment processors. This decentralization-first model supports Tether’s mission of making AI accessible and censorship-resistant.

Tether AI is expected to integrate with Tether’s existing peer-to-peer ecosystem, including Keet, a decentralized messaging app, and Pear, a framework for building P2P applications. Initially unveiled in December 2024, the platform is slated for launch in 2025, marking Tether’s strategic entry into decentralized AI with embedded crypto functionality. This initiative is part of a broader corporate shift announced in April 2024, which had Tether restructuring its operations to create dedicated units for AI and peer-to-peer technologies, such as Tether Data.

Tether is actively developing Tether AI and a suite of AI-powered applications. These include a real-time AI translation tool for international communication, a voice assistant for hands-free platform and application control, and a Bitcoin wallet assistant to streamline transaction management. Tether, under Ardoino, views AI as a cornerstone of technological advancement. Tether’s AI expansion follows the company reporting $1 billion in operating profit for Q1 2025, mainly from US Treasury returns. With $149.3 billion in total assets and $5.6 billion in excess reserves, Tether remains dominant in the stablecoin sector. Its move into AI underscores a commitment to innovation, positioning the firm at the forefront of crypto and next-generation intelligent technologies.

Tether’s WDK, launched in November 2024, is an open-source framework designed to simplify the creation of self-custodial wallets across mobile, desktop, and web platforms. The WDK empowers developers to build crypto wallets that support secure, peer-to-peer transactions without relying on centralized infrastructure. Key features of the WDK include modularity, pre-built components for encryption, transaction management, key recovery, and cross-platform compatibility, and user sovereignty, where users retain exclusive control over their private keys and funds. In the context of Tether AI, WDK will play a critical role in embedding native crypto payments into decentralized AI applications, allowing automated agents and users to transact onchain with minimal friction.

Tether AI signals a transformative shift in how AI can be developed, deployed, and monetized in a decentralized ecosystem. Blending AI capabilities with blockchain infrastructure and native crypto payments has enabled Tether to create applications that are not only intelligent but also financially autonomous and resistant to centralized control. Tether AI will facilitate direct execution payments on peer-to-peer networks without any role for intermediaries. For developers, Tether AI opens up new avenues to build adaptive AI systems that run on any device, support real-time crypto payments, and prioritize user sovereignty. For users, it means greater control over personal data, enhanced privacy, and transparent interaction with AI services. This paradigm challenges the dominance of cloud-based AI monopolies, offering an open-source alternative that can evolve with community input. In the long term, Tether AI could influence sectors such as decentralized finance (DeFi), content moderation, Web3 gaming, and autonomous economic agents. It positions AI not as a corporate product, but as a public utility — transparent, modular, and composable — while integrated with crypto. By merging AI with the trustless architecture of blockchain, Tether is pioneering a new class of decentralized digital infrastructure.