Key Details:
- Tether is launching its $140 billion USDT stablecoin on the Bitcoin and Lightning Networks, aiming to expand its role in the Bitcoin-based financial ecosystem.
- The integration, enabled by Lightning Labs’ Taproot Assets protocol, allows USDT issuance on Bitcoin’s base layer and transactions on Lightning Network, offering faster and cheaper payments.
- Tether’s move marks a shift for stablecoins, which have primarily thrived on smart contract platforms like Ethereum, Tron, and Solana.
San Salvador — Tether, the crypto company behind the largest stablecoin, is introducing its $140 billion USDT token to Bitcoin — the blockchain that supports the largest cryptocurrency — and Bitcoin-based scaling service Lightning Network, as stated by the company on Thursday.
Announced at the Plan B conference in San Salvador, Tether CEO Paolo Ardoino expressed that introducing USDT to Bitcoin and Lightning seeks to provide “practical solutions for remittances, payments, and other financial applications that demand both speed and reliability.”
Stablecoins represent a $200 billion digital asset category, anchored to external assets, predominantly the U.S. dollar. They serve as a bridge between government-issued money and blockchain-based assets and are increasingly favored for everyday usages such as payments, savings, and remittances, particularly in emerging nations.
While stablecoin adoption has rapidly increased in recent years, activity and supply still largely concentrate on smart contract platforms like Ethereum, Tron, and Solana.
The integration of USDT with Bitcoin is made possible by Taproot Assets, which facilitates asset issuances on the Bitcoin base layer and transactions over the Lightning Network, a platform designed for fast and cost-effective transactions, ultimately enhancing micropayments.
“Millions of people will now be able to use the most open, secure blockchain to send dollars globally,” asserted Elizabeth Stark, CEO of Lightning Labs, the development organization behind the Lightning Network. “Bringing USDT to Bitcoin merges the security and decentralization of Bitcoin with the speed and scalability of Lightning,” she added.
UPDATE (Jan. 30, 22:01 UTC): Adds statements from Tether CEO and Lightning Labs CEO.
