Tether creates AI wallet with on-device processing for Bitcoin, USDT, and XAUT

Source: Yellow Original Title: Tether creates AI wallet with on-device processing for Bitcoin, USDT, and XAUT

Original Link: Tether (USDT) is developing a self-custodied mobile wallet that integrates artificial intelligence directly into users' devices instead of cloud servers.

The CEO Paolo Ardoino announced on December 20 that the company is hiring a Lead Software Engineer to build the wallet using Tether's proprietary technologies.

The wallet will only support four assets in a deliberate disengagement from multichain competitors.

The issuer of the 186 billion dollar stablecoin is expanding beyond infrastructure into consumer-facing products.

What happened

Ardoino revealed that the wallet will support Bitcoin via Lightning Network, USDT, the gold-backed token XAUT, and the compliant stablecoin USAT.

The product uses Tether's Wallet Development Kit along with QVAC, the company's decentralized AI computing platform.

QVAC processes data locally on users' devices instead of routing the information to cloud infrastructure.

This architecture seeks to provide AI-powered financial assistance without the typical privacy concessions associated with cloud-based services.

Ardoino envisions AI agents controlling funds through a non-custodial wallet under rules defined by the user instead of platform terms.

The announcement follows the recent launch of Tether's PearPass, a peer-to-peer password manager that eliminates the reliance on cloud storage.

The restricted asset list indicates a focus on “hard money” payment infrastructure rather than broader DeFi speculation.

USDT remains the largest stablecoin, with approximately $186 billion in market capitalization, and dominates trading pairs on centralized and decentralized exchanges.

Why it matters

Tether's vertical integration strategy positions the company to control the entire stack, from stablecoin issuance to wallet interface and security infrastructure.

The move represents a significant strategic shift, from backend infrastructure provider to consumer technology platform.

Local AI processing addresses growing privacy concerns in crypto while enabling automated financial tasks without external intermediaries.

The limited support for assets differentiates Tether's approach from general-purpose wallets that support thousands of speculative tokens.

By restricting support to Bitcoin, stablecoins, and tokenized gold, Tether is betting on fundamental payment and store of value assets.

The development indicates Tether's broader ambitions in AI and consumer technology beyond traditional stablecoin operations.

Active hiring for principal engineering positions indicates execution over conceptual planning.