The company recently partnered with Line Next to bring its flagship USDT token to the Kaia blockchain. This will make the seamless integration into Line’s messenger-based Mini DApp ecosystem possible. This will also allow users to send and receive USDT for payments, DeFi, and peer-to-peer transactions directly with a familiar platform. Additionally, Tether strengthened its compliance infrastructure by partnering with Chainalysis to integrate institutional-grade monitoring tools into its Hadron platform for tokenizing real-world assets (RWAs). This move supports the growing regulatory demands and builds confidence among institutional users. Tether is also pushing into artificial intelligence with the upcoming launch of Tether AI, a decentralized, open-source platform that merges crypto payments with censorship-resistant AI services.
Tether Expands Presence in Asia
Tether recently expanded its flagship stablecoin, USDT, to the Kaia blockchain through a new partnership with Line Next, the Web3 division of Japan’s messaging giant Line. The move integrates USDT into Line’s messenger-based Mini DApp ecosystem and its self-custodial wallet, and allows users to send and receive the stablecoin for payments, cross-border transfers, and DeFi-related activities in an interface they already use daily.
According to Tether’s May 7 announcement, this collaboration enhances the accessibility of stablecoins in everyday consumer life, particularly in Asia. Tether CEO Paolo Ardoino pointed out that the expansion is part of the company’s commitment to boost global stablecoin adoption, especially in Asia’s tech-savvy markets. Users of Line will also be able to earn mission-based rewards in USDT and conduct peer-to-peer transfers via the in-app wallet. More features are also expected in the future.
Key features (Source: Tether)
Kaia blockchain, the infrastructure behind Line’s Mini DApps, offers instant finality and low-latency transactions, which makes it very well-suited for stablecoin integration. Kaia DLT Foundation chair Sam Seo explained that the partnership’s goal is to deliver a fast and seamless USDT experience across various platforms, including Line, DeFi applications, and centralized exchanges. Youngsu Ko, CEO of Line Next, said the collaboration will serve as a "dollar-based gateway," helping users access Web3 services more easily and making them more practical for daily use.
USDT is still the world’s largest stablecoin, with a circulating supply of more than 149.4 billion tokens. Tether is also making it a priority to expand its footprint aggressively by minting another $1 billion USDT on the Tron network on May 5, which now holds $71.4 billion of the token.
Tether Partners with Chainalysis for RWA Monitoring
Tether also recently announced a new partnership with blockchain analytics firm Chainalysis to improve compliance and risk monitoring across its growing tokenization platform. The integration brings Chainalysis' suite of institutional-grade tools directly onto the Hadron by Tether platform, which was launched in November of 2024 to serve institutions, corporations, and governments interested in tokenizing real-world assets (RWAs). These assets include a wide range of instruments like financial products, real estate, commodities, and debt.
The collaboration is part of the broader shift in the crypto landscape toward increased regulatory oversight and a heightened focus on transparency. Tether’s CEO, Paolo Ardoino, said that the integration allows for robust risk management, real-time transaction monitoring, and Know-Your-Transaction (KYT) capabilities without undermining the decentralized ethos of blockchain technology. The move is also expected to improve institutional confidence in using blockchain for high-value asset transfers.
Since Hadron’s debut, the tokenized RWA sector saw a lot of growth. Data from RWA.xyz indicates the total market value of tokenized RWAs surged to $22 billion, which is up 10.5% over the past month, with the number of RWA token holders rising 5.6% to reach 100,115. This growth certainly suggests that platforms like Hadron are gaining traction as viable infrastructure for the token economy.
RWA market overview (Source: RWA.xyz)
Chainalysis was founded in 2014, and cemented its role as a cornerstone of blockchain compliance infrastructure. It already partners with major industry players including Crypto.com, Bitfinex, MoonPay, and Spanish banking giant BBVA.
The firm expanded its capabilities over the past few months through the acquisition of Web3 security firm Hexagate in December 2024 and AI fraud detection startup Alterya in January 2025. These moves made it possible for Chainalysis to address the challenges of digital asset security and fraud, especially as the firm forecasts that 2025 could see a record surge in crypto scams driven by advances in artificial intelligence.
The financial strength behind this expansion is also interesting. Tether posted an operating profit of $1 billion for the first quarter of 2025, after generating $13 billion in profits throughout 2024. The partnership with Chainalysis signals that Tether is ready for yet another successful year by expanding its footprint in regulated, institutional markets.
Tether Expands Into AI
In addition to all of its other developments, Tether is also preparing to launch its new artificial intelligence platform, Tether AI. This platform will integrate cryptocurrency payments and operate on a decentralized infrastructure.
CEO Paolo Ardoino unveiled the initiative on May 5 through a post on X, and called it a gateway to “personal infinite intelligence.” The platform will support peer-to-peer (P2P) transactions in major cryptocurrencies, including USDT and Bitcoin, enabling direct payments without centralized intermediaries.
Tether AI is being designed as a fully open-source runtime environment, free from reliance on API keys or central control points. Ardoino explained that the platform will be modular, composable, and able to run on any device or hardware to offer maximum adaptability. Its decentralized structure aims to provide a censorship-resistant AI experience, which will help it stick to Tether’s broader vision of technological freedom and self-sovereignty.
The AI platform’s payment functionality will be enhanced through Tether’s open-source wallet development kit (WDK), which was launched in November of 2024. This toolkit allows developers to build self-custodial wallet applications for mobile, desktop, and web, ensuring users have complete control over their crypto assets. By combining this infrastructure with the AI platform, Tether is positioning itself to offer a seamless and privacy-focused experience for managing digital assets and AI tools in tandem.
Tether AI is a key component of Tether’s expansion beyond stablecoins. In April 2024, the company underwent a restructuring to introduce new divisions focused on data, AI, and peer-to-peer applications, under the umbrella of Tether Data. This pivot will help achieve the company’s long-term ambition to lead in both decentralized finance and decentralized intelligence. Ardoino also previously shared that the Tether AI division is working on multiple applications, including translation tools, voice assistants, and AI-powered Bitcoin wallet assistants.
Post from Paolo Ardoino (Source: X)
Drawing inspiration from science fiction author Isaac Asimov, Ardoino described AI as a force that will “become part of the very fabric of the universe.” With Tether AI, the company appears intent on building a decentralized framework that aligns with this expansive vision.
