Tether is building a decentralized ChatGPT rival, but that’s only one piece of its big U.S. expansion plan—and it’s also reshaping the stablecoin game in the process.
Tether is sticking to its no-interest policy and channeling its billions into tech, including AI. At the center of that plan is a bold new project: its decentralized ChatGPT rival.
How Do Stablecoin Yields Work?
Most stablecoins—like USDC or some newer players—try to compete by offering a yield. That means they pay you interest for holding their coin, like a savings account. These projects earn from assets like U.S. Treasuries and give part of that back to users.
CoinGecko New Category: Yield-Bearing Stablecoin
We’ve added a new category for Yield-Bearing Stablecoin. These are stablecoins that passively earn interest for holders while maintaining a stable value.
Check it out
https://t.co/xfBpoUhjJl pic.twitter.com/WSnqhUSsB3
— CoinGecko (@coingecko) March 20, 2025
For example:
- Circle backs USDC with real cash and short-term government bonds. Its issuer is considering yield-paying versions that allow users to earn some interest.
- Other coins, like USDS (formerly DAI) or newer DeFi-based stablecoins, may offer staking, where you lock your tokens and earn yield in return.
But regulators may view these as securities.
Why Tether Doesn’t Offer Yields
Tether’s CEO, Paolo Ardoino, is against yield-bearing stablecoins. His view? “If you give away all the yield, you make no money. If you keep 1%, someone else will undercut you.” He calls it a “race to the bottom.”
JUST IN: Tether CEO Paolo Ardoino declares, “Tether won’t try to make USDT comply with new U.S. laws.”
Their stance follows the SEC’s latest crackdown on stablecoins.
It’s clear this fraud is unraveling. Tether’s days in the U.S. are numbered. Once it goes bust, BTC will…
— Jacob King (@JacobKinge) April 4, 2025
Instead, Tether keeps the yield from its U.S. Treasury investments and doesn’t pay users interest. While that might not excite users in the U.S., Ardoino says people in places like Argentina want a stable dollar—they’re not chasing 4% yields. They care about stability, not extra gains.
Tether Has Bigger Plans
While other stablecoins chase banks and yields, Tether is working on a decentralized ChatGPT rival—a peer-to-peer AI system that runs on your device and doesn’t steal your data. This new platform will be free and powered by a $10B venture fund, and every user will get a built-in USDT wallet.
Talked to @paoloardoino about Tether’s U.S. plans, AI ambitions, World Liberty Finance and yield-bearing stablecoins (unsurprisingly, he’s not a fan)https://t.co/b0CovlKxzA
— Nina Bambysheva (@ninabambysheva) April 9, 2025
Conclusion
If you care more about global stability, privacy, and futuristic tech like a decentralized ChatGPT rival, keep your eyes on Tether. If you want yield, stablecoins like USDC or DeFi alternatives may be your best bet. They’re not only building a better dollar—they’re trying to reshape the internet itself.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
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