Stablecoin issuer Tether (USDT) launched PearPass on Wednesday , a password manager that stores credentials locally on devices rather than in cloud servers.
The move follows a year when over 16 billion passwords were leaked in what Forbes called the largest data breach ever.
The free application represents Tether's expansion beyond cryptocurrency into broader digital infrastructure.
CEO Paolo Ardoino first teased PearPass in June 2025 after the massive credential leak.
What Happened
PearPass stores all user credentials on individual devices and synchronizes them across devices through encrypted peer-to-peer connections.
The application eliminates centralized servers that traditional password managers like LastPass and 1Password rely on.
Users recover access through self-managed private keys rather than company-controlled recovery systems.
The open-source application underwent an independent security audit by Secfault Security, a firm specializing in cryptographic analysis.
PearPass includes a built-in password generator and end-to-end encryption using open-source cryptographic libraries.
The application operates as part of Tether's Pear ecosystem, which develops decentralized alternatives to centralized internet infrastructure.
Tether positioned the launch as addressing vulnerabilities in cloud-based password storage that have resulted in multiple high-profile breaches.
The company operates USDT, the world's largest stablecoin by market capitalization.
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Why It Matters
The peer-to-peer architecture removes single points of failure that make cloud password managers attractive targets for attackers.
Local storage means credentials never exist on external servers vulnerable to mass breaches.
The approach trades convenience for security by requiring users to manage their own encryption keys.
Lost keys mean permanent loss of access with no recovery option.
The model requires strong device-level security since local storage remains vulnerable to malware and device theft.
Mainstream adoption faces barriers as cloud-based managers integrate seamlessly with browsers and platforms.
The open-source model allows security researchers to audit the code for vulnerabilities.
Tether's entry signals growing institutional interest in decentralized alternatives to centralized infrastructure.
The launch comes as the company explores a $20 billion fundraising round at a $500 billion valuation.
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