Tether Building Self-Custodial Bitcoin Wallet Powered by AI

Stablecoin issuer Tether is building a self-custodial crypto wallet powered by artificial intelligence. The CEO, Paolo Ardoino, disclosed this on X, noting that the wallet will also support Bitcoin via Lightning Network.

Based on Ardoino’s description of the wallet, it would only support Bitcoin and all Tether-issued tokens, including dollar-pegged stables and tokenized gold.

The CEO said:

“Imagine a wallet that supports only BTC (also via LN), USDT, USAT, XAUT. And will have local private Al integration via QVAC.”

Tether Seeking Lead Engineer for the AI-Integrated Bitcoin Wallet

The report of Tether’s plan first became public after Ardoino posted that the company is looking for a lead engineer for the project. Judging by the CEO’s post, more than one wallet is in the works.

According to the post, the role represents an opportunity to join Tether in building the future of finance. It will involve developing high-performance and lightweight crypto wallet solutions for several users.

The job description reads:

“You will be working on developing cutting-edge mobile applications integrating crypto wallets and defi features.”

Ardoino’s goal for Tether’s planned wallet is for AI agents to have control over using funds in the wallet. He envisions a future where a user can delegate control of funds in a self-custodial wallet to an AI agent without worrying about any compromise.

Unsurprisingly, the stablecoin issuer aims to develop the wallet using its open-source Wallet Development Kit (WDK). Tether launched the  WDK a few months ago, allowing anyone to build a self-custodial wallet for any network.

The company also has its open-source, locally run AI platform, QVAC, which it will integrate with the wallet. QVAC is decentralized and privacy-focused, features that may help limit vulnerabilities when it is integrated.

The idea of a Tether wallet has been met with mixed reactions in the crypto community. While some consider it a major move, others worry about the user experience and how it will work.

Tether Doubles Down on Diversification Play

Meanwhile, Tether plans to build crypto wallets, highlighting the company’s desire to be more than just a stablecoin issuer. The company has invested millions in other business lines over the past two years.

These businesses span every sector, including artificial intelligence, gold, data, cryptocurrency infrastructure, and even sports.

The company recently attempted to acquire full ownership of the Italian Serie A club Juventus for $1.2 billion. However, majority owner Exor rejected the offer, leaving the firm stuck as the minority owner.

Despite all the diversification and infrastructure play, USDT remains the major moneymaker for Tether. The company is on track to finish the year with $15 billion in profits, a year in which USDT reached 500 million users.

Tether is definitely not pulling back on its stablecoin business, with the company now working on USAT. This would be a GENIUS Act-compliant stablecoin for the US market.