Tether, a major player in the stablecoin market, has announced the development of a decentralized ChatGPT rival as part of its ambitious U.S. expansion plans. The company emphasizes stability and privacy while moving away from yield-based models.
How Stablecoin Yields Work
Many stablecoins, like USDC, compete by offering yields, meaning they pay interest for holding their coins. These projects earn from assets like U.S. Treasuries and return part of that income to users.
Why Tether Doesn’t Offer Yields
Tether’s CEO Paolo Ardoino opposes yield-bearing stablecoins. His view is that by giving away all yields, the company makes no money. Instead, Tether retains the profit from its U.S. Treasury investments and chooses not to pay users interest, focusing on stability in countries like Argentina.
Tether’s Ambitious Plans
Tether is working on a decentralized ChatGPT alternative — a peer-to-peer AI system that runs on user devices while ensuring data privacy. This project will be free and supported by a $10 billion venture fund, with every user receiving a built-in USDT wallet.
Attention to Tether is drawn by its focus on global stability and privacy, along with advancements like a decentralized ChatGPT rival. However, for those seeking yield, stablecoins like USDC may remain more suitable.
