KEY FACTS: Tether has announced the integration of its stablecoin, USDt, into Bitcoin’s base layer and Lightning Network through the Taproot Assets protocol, developed in partnership with Lightning Labs. This integration enhances transaction speed, security, and scalability, making USDt more accessible for remittances, payments, and cross-border transactions while maintaining Bitcoin’s decentralized ethos. With over 350 million users globally, USDt’s adoption of Lightning will enable efficient and low-cost payments, supporting broader Bitcoin-based financial systems. The announcement was made by Tether CEO Paolo Ardoino and Lightning Labs CEO Elizabeth Stark at the Plan ₿ Forum in El Salvador.
Source: Tether News
Tether Integrates USDt into Bitcoin’s Lightning Network
Tether, the leading company in the digital assets industry, has announced the integration of its flagship stablecoin, USDt, into Bitcoin's ecosystem. This integration encompasses Bitcoin's base layer and its second-layer solution, the Lightning Network. The initiative is underpinned by Taproot Assets, a new protocol leveraging Bitcoin's Taproot upgrade, developed in collaboration with Lightning Labs. This move aims to merge Bitcoin's renowned decentralization and security with the Lightning Network's speed and scalability, to offer a transformative approach to stablecoin functionality within the Bitcoin framework. The announcement was made by Tether CEO Paolo Ardoino and Lightning Labs CEO Elizabeth Stark at the Plan ₿ Forum in El Salvador as captured in their blog on 30th January 2025.
Tether, the largest company in the digital assets industry, announced the integration of USDt into Bitcoin’s ecosystem, including both its base layer and the Lightning Network... Once fully integrated, USDt will operate seamlessly on Bitcoin’s base layer and its layer 2 Lightning Network. This will enable high-speed, low-cost transactions while combining Bitcoin’s robust security and scalability. Source
Upon full integration, USDt will function seamlessly across Bitcoin's base layer and the Lightning Network. This dual-layer operation will facilitate high-speed, low-cost transactions, marrying Bitcoin's robust security infrastructure with enhanced scalability. As the world's largest stablecoin, serving over 350 million users, USDt's deployment on the Lightning Network promises developers and users access to Bitcoin's unparalleled reliability, coupled with the efficiency of Lightning-enabled payments.
The growing demand for Bitcoin among institutions and retail traders underscores the significance of this integration. Tether is positions its stablecoin as a pivotal component in Bitcoin-based financial operations by embedding USDt into Bitcoin's financial systems. The Taproot Assets protocol augments Bitcoin's capabilities by supporting tokenized assets like USDt while preserving the blockchain's decentralized ethos. This integration is anticipated to deliver a scalable and seamless payment solution, powering the AI economy and unlocking new use cases, including microtransactions, remittances, and efficient cross-border settlements.
Paolo Ardoino, CEO of Tether, emphasized the company's commitment to innovation within the Bitcoin ecosystem.
"By enabling USDt on the Lightning Network, we are not only reinforcing Bitcoin's foundational principles of decentralization and security but also creating practical solutions for remittances, payments, and other financial applications that demand both speed and reliability."
As the largest stablecoin, USDt boasts a market capitalization of $139.4 billion, significantly surpassing its closest competitor, Circle's USD Coin (USDC), which stands at $53.1 billion. In 2024, Tether processed transactions totaling $10 trillion, approaching Visa's $16 trillion, and managed USDt across more than 10 blockchains, including Ethereum, Tron, Solana, and Avalanche. The integration with the Lightning Network is anticipated to further solidify USDt's position in the cryptocurrency market.
Elizabeth Stark, CEO of Lightning Labs, highlighted the transformative potential of this integration. Stark remarked: "Today marks a new era for stablecoins. Bringing USDt to Bitcoin combines the security and decentralization of Bitcoin with the speed and scalability of Lightning. Millions of people will now be able to use the most open, secure blockchain to send dollars globally. It all comes back to Bitcoin," A post on X platform via the Lightning Labs official handle, hinted "it all comes back to bitcoin." Today we're announcing that Tether is coming to bitcoin and Lightning! 💸⚡ Tether and Lightning Labs plan to continue their collaboration to enhance the ecosystem, to ensure seamless adoption and robust support for developers and users. As USDt becomes operational on the Lightning Network, this integration is expected to open up new opportunities for Bitcoin's broader adoption in everyday financial systems. Information Sources: If you found the article interesting or helpful, please hit the upvote button, and share for visibility to other hive friends to see. More importantly, drop a comment below. Thank you! INLEO's mission is to build a sustainable creator economy that is centered around digital ownership, tokenization, and communities. It's Built on Hive, with linkages to BSC, ETH, and Polygon blockchains. The flagship application: Inleo.io allows users and creators to engage & share micro and long-form content on the Hive blockchain while earning cryptocurrency rewards. Hive: inleo.io/profile/uyobong/blog Twitter: https://twitter.com/Uyobong3 Discord: uyobong#5966 Posted Using INLEO
Source: Lightning labs/X
With the security and decentralization of bitcoin and the speed and scalability of Lightning, USDT will bring hundreds of millions of users and trillions in volume.
It all comes back to bitcoin.
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