Tether, the crypto firm behind the most popular stablecoin USDT USDT$0.9999, has invested $50 million in sleep technology startup Eight Sleep at a $1.5 billion valuation, according to a Wednesday press release and data from Crunchbase.

With the funding, Eight Sleep plans to develop new AI health features using Tether’s QVAC architecture, a computing framework designed to process data at the device level rather than relying fully on cloud systems.

Eight Sleep builds sensor-equipped sleep systems that track biometrics such as heart rate and temperature during the night. Its flagship "Pod" product adjusts mattress temperature and generates sleep insights based on real-time physiological data.

"We believe advanced personalized AI is the perfect pathway to understand and expand human potential," Paolo Ardoino, CEO of Tether, said in a statement.

The investment is the latest example of Tether pushing beyond stablecoins and crypto infrastructure. The firm is best known for its $183 billion USDT stablecoin, which is popular as a savings and payments tool across emerging markets with limited access to U.S. dollars. Tether reported more than $10 billion in net profits through 2025 and has increasingly channeled those earnings into venture investments across energy, payments, artificial intelligence, and health technology.

The deal follows Tether’s recent launch of QVAC Health, a platform that aggregates personal health data from wearables and other sources while keeping the information encrypted and under the user's control.