Thomas Daniels
By early 2025, Tether, the company that issues the $140 billion USDT stablecoin, plans to expand its business by entering the artificial intelligence (AI) space. Tether’s AI platform will be unveiled in Q1 2025, according to CEO Paolo Ardoino’s announcement on X (previously Twitter). This strategic change reflects the company’s desire to enter new markets and diversify beyond its core offering of US dollar-pegged stablecoins.
Since its founding, USDT has been Tether’s primary source of income. But today, Ardoino’s plans for the business include forays into AI, energy, and Bitcoin mining. These actions demonstrate Tether’s dedication to broadening its sources of income and maintaining its lead in a cutthroat industry.
Tether made an investment in Northern Data, a cloud computing and artificial intelligence business, in 2023. Since then, Northern Data has changed its priorities, considering selling its cryptocurrency mining business to focus on artificial intelligence. This is in line with Tether’s larger plans, such as its most recent ventures into energy and commodities trading finance.
Tether’s strong financial results give its aspirations in AI a strong platform. The business made $5.2 billion in the first half of 2023, including $4.5 billion in Q1 alone, setting a new profit record.
Additionally, in response to the EU’s new Markets in Crypto-Assets (MiCA) regulatory framework, the company has been strengthening its position in Europe. StabIR, an endeavor to create stablecoin offerings that comply with MiCA, has received endorsement from Tether. This demonstrated Tether’s proactive attitude to adjusting to regulatory changes, as Coinbase had just delisted USDT and other non-compliant tokens.
The proposed foray into AI by Tether is indicative of a larger trend in which cryptocurrency companies are using cutting-edge technologies to diversify. This daring decision highlights the company’s agility and ambition in a rapidly changing financial world, even though its core product continues to dominate.
