Tether released this last year but it didn't get much attention. Paulo Ardoino recently started posting about it on X.
Supposedly it is a developer kit for wallets that want to support bitcoin, LN, and Tether.
They are really pushing the "non-custodial" element of this, but it doesn't really make sense to me. How can Tether tokens ever be self-custodial?
WDK is a developer-first framework to create cross-chain wallets that are secure, extensible, and production-ready. It provides a single, stateless API to interact with Ethereum, Bitcoin, TON, and Spark (Lightning Network)—abstracting blockchain-specific complexity while keeping developers in full control of keys and data.
The landing page has this
Do androids dream of electric sheep and noncustodial wallets?
Makes you wonder if they are planning something involving payments and ai agents.
I want to say that 99.999% of wallets I have seen or used that call themselves non-custodial allow you to hold USDT or USDC which the token itself clearly isnt so that seems to be a common thing with wallet providers I have seen.
I guess maybe the BTC/LN aspect could be non-custodial though?
Yes, or perhaps they let you "manage" your tether tokens with a key you control (even though they can lock any tether they want at any time).
So I just went and doubled checked and in the Digital Asset Market Clarity Act of 2025 that is working its way through the House right now has a Protection of Self-Custody section and reading through it I believe it properly sets it up to where self-custody will not allow for the managed aspect.
238 pages of "clarity". Can I beg you for a pointer to where this gets addressed?
Maybe the reference is to this very short section on "Protection of Self Custody" which, to non-legal mind, seems incredibly limited (no self custody protection if you aren't going to follow sanctions law...well how is that going to be enforced?)
From what I get out of this section, and yes there is always room for improvement this did manage to get bipartisan support though so naturally sacrifices had to be made, gives a user essentially how all other rights are promised... as long as you follow the law you are fine. I mean even the Second Amendment has limitation for violent offenders for what its worth (not saying it is right or wrong just what it is if that makes sense).
The Sec. of Treasury ie the Treasury Department is in charge of enforcement and would likely just follow the transactions. Think of it this way they are able to track and black list various terror org wallet addresses and so if you send money from your hardware wallet to fund ISIS then essentially your self-custody isnt protected anymore cause you just ya know funded ISIS.
[sanctioned party A] coinjoins, so does Bob. Bob opens a lightning channel to your node with joined coins and spends the entire balance over a couple of months on zaps. Closes the channel because someone else offers better ppm fees.
The cyberspook company that we shall not name will now report coin in your wallet as linked to [sanctioned party A]. Do you lose your right to self custody? All you did was run a lightning node.
lol wait did you remove the org I commented on or did SN cause it makes a pretty big difference. I wasn’t talking about the little players I’m talking the hugely problematic terrorist orgs that under no circumstances should a US citizen be allowed to fund
Thanks for your insights here. I'm sure no bill gets this far without a lot of wrangling and changes.
My concern is not so much with the qualification, but with the door it opens for implementation.
It feels to me like this law leaves it pretty wide open for law makers to interpret this as: citizens may self custody if they do it the way we tell them (so we can ensure they aren't sending it to ISIS).
Finally, I'd note that neither the first nor second amendments felt the need to say that their respective rights were protected...except when people committed crimes with speech or guns.
So working on legislation the reason that in general bills have gotten much larger the last 18 months or so is due to the fall of the Chevron Doctrine. Congress now has to directly tell exactly who exactly what they want. Also the pages are like freaking triple spaced and honest to god the words only are on a 4 maybe 5 inch space (notice now empty the sides are).
Plus with Finance law in particular they have to amend so many other laws and just opening the doc up I went to page 11 and this was the page
In honestly anything else this would be what maybe a quarter of a page a third tops but here its a whole ass page and there is a lottttttttt of this.
as if... machine and robots can have freedom and mind!
But ironically, if you hold USDT, you don’t have the freedom to control your own finances.
yeah, just forgot to add...
In the other side, and due to the exposure they have, people will believe this bs and start building on it anyway
What the hell is Spark? Can't abstract LN complexity and stay non-custodial...
It's a state chain: #1006462
So it is nothing like lightning network
Ran into this job posting from Tether for an AI filmmaker:
https://xcancel.com/keet_io/status/1934306283596738996
I think Americans don’t care about tether development because the only thing you can do with it is buy shitcoins with it.
It America no one is accepting it for payment for anything. No banks accept it for deposits. Until that changes why would anyone want to build a tether Wallet.
It’s the same problem liquid has.
https://xcancel.com/paoloardoino/status/1933851157212049854