Tether, the company behind the largest stablecoin by market capitalization, has launched a self-custodial wallet that includes a cloud-based key backup option. The tether.wallet app allows users to manage USDT, XAUT, USAT, and Bitcoin while maintaining full control over their private keys.
According to sources familiar with the development, the wallet is designed to provide a balance between security and convenience. “This is a significant step for Tether as it moves beyond just being a stablecoin issuer,” said one analyst, who requested anonymity due to lack of authorization to speak publicly.
The launch comes amid growing regulatory scrutiny of cryptocurrency custodians and exchanges. By offering a self-custodial solution, Tether may be positioning itself to appeal to users wary of centralized platforms. However, some experts caution that cloud backups could introduce new security risks.
Looking ahead, industry watchers will be monitoring adoption rates and any potential security incidents involving the new wallet. The move could signal Tether’s ambition to expand its ecosystem beyond stablecoins.