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- USDT parent company Tether is eyeing an AI platform launch.
- Tether is diversifying its holdings with the potential for a Cantor Fitzgerald partnership.
Tether Holdings, the company behind the USDT stablecoin, is reportedly set to enter the Artificial Intelligence (AI) industry. Paolo Ardoino, Tether’s CEO, has announced the firm’s plan to launch an AI platform in 2025.
Tether’s AI Platform Vision
Ardoino disclosed in an interview that the AI platform would allow people to use their cell phones to communicate with artificial intelligence. Tether plans to launch the AI platform in the first quarter of 2025, using part of its 2024 net profits.
Ardoino said the firm closed the year with over $10 billion in net profits, highlighting the firm’s leading position in the stablecoin market. A huge chunk of Tether’s earnings comes from investing its reserves backing stablecoins, including USDT in US Treasuries, gold, and other securities. Tether plans to invest at least half its profits in AI and other investments next year.
Meanwhile, according to the CEO, Tether has already invested over half of this year’s net profit. The company announced on Friday that it agreed to invest $775 million into the video-sharing network Rumble. The company made a primary commitment of $250 million in cash and supported Rumble’s tender offer for about 70 million shares at $7.50 per share.
Additionally, Tether has invested in Bitcoin mining, biotechnology, and other industries. CNF reported in June that Tether committed $18.75 million in a strategic investment in XREX Group. The partnership aims to drive innovation in facilitating USDT-based cross-border payments in emerging economies and lead regulatory and technological developments.
Ardoino disclosed in a recent interview that Tether is looking to invest in the US. This move comes amid expectations of a favorable regulatory environment under Donald Trump’s new administration.
Moreover, Howard Lutnick, Trump’s Commerce Secretary nominee, is the head of Cantor Fitzerald, which owns a stake in Tether. The firm is also the custodian of the stablecoin issuer’s reserves.
Lutnick is reportedly discussing deepening financial ties between Cantor Fitzerald and Tether. The report even claims discussions are ongoing to launch a lending program.
Spike in USDT’s Market Capitalization
This year, the demand for Tether’s USDT stablecoin has skyrocketed following Bitcoin’s surge to new all-time highs. Current market data shows that USDT’s market cap now stands at $140 billion, increasing by over $50 billion in 2024.
Tether reported earlier this month that the number of wallets holding USDT increased by 71% this year. The company said 109 million on-chain wallets held USDT at the start of Q4 2024, over twice the number of wallets with Bitcoin.
According to a CNF report, USDT is now recognized as an Accepted Virtual Asset by Abu Dhabi Global Market’s FSRA.
USDT remains the leading stablecoin in adoption, with four times more wallets than all other stablecoins combined. Notably, USDT has emerged as a popular asset in business transactions. The stablecoin’s strong appeal lies in its low fees, instant settlement, and easy access to the USD.
