Tether CEO Paolo Ardoino predicts that blockchain will play a central role in machine-to-machine commerce, with up to 1 trillion AI agents transacting via blockchain in the next 15 years.

AI agents, which are autonomous software bots capable of operating without human intervention, are expected to become crucial in the digital economy.

He said AI agents will likely use self-custodial wallets and stablecoins or Bitcoin, as traditional banks may not support such autonomous activity.

Ardoino highlighted Tether’s wallet-development kit, launched in November 2024, as a key enabler for non-custodial transactions.

Tether’s USDT dominates the stablecoin market with over US$155 billion in circulation, contributing to the US$243 billion total supply, according to The Block.

His comments come amid US regulatory discussions and follow Tether’s recent AI ventures, including Tether Data and Tether AI.

🔗 Source: The Block

🧠 Food for thought

1️⃣ Stablecoins’ evolution from volatility hedge to financial infrastructure

Stablecoins emerged specifically to address cryptocurrency’s volatility problem, making them fundamentally different from Bitcoin in their design and use cases 1.

While Bitcoin represents approximately 48% ($600 billion) of the cryptocurrency market, stablecoins have gained a significant 10% ($128 billion) share, highlighting their growing importance in digital finance 2.

This growth reflects a clear market differentiation: Bitcoin functions primarily as a store of value and investment vehicle, while stablecoins serve as practical transaction mechanisms. Their price stability makes them suitable for everyday business operations 3, 4.

The current stablecoin ecosystem has evolved into three distinct types: fiat-backed (like Tether), crypto-backed (like Dai), and algorithmic stablecoins, each with different risk profiles and stability mechanisms, creating a sophisticated market infrastructure 5.

Stablecoins’ increasing adoption in cross-border payments, decentralized finance (DeFi), and business transactions demonstrates their evolution from simple volatility hedges to essential components of the emerging digital financial system 4, 6.

2️⃣ Regulatory clarity becoming the catalyst for mainstream stablecoin adoption

The US Senate’s recent passage of the GENIUS Act marks a significant moment for stablecoin regulation, establishing federal oversight for USD-pegged stablecoins with bipartisan support (68-30 vote) 7.

Recent Tether developments