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- Tether integrates its stablecoin USDt into Bitcoin’s ecosystem, enhancing transaction speed and scalability through the Lightning Network.
- This integration leverages Taproot Assets to support tokenized assets while maintaining Bitcoin’s decentralization and security.
- The collaboration between Tether and Lightning Labs aims to expand Bitcoin’s adoption in financial systems, offering efficient solutions for remittances and payments.
San Salvador, El Salvador – On January 30, 2025, Tether, a leading company in the digital assets industry, announced the integration of its stablecoin USDt into Bitcoin’s ecosystem. This integration includes both Bitcoin’s base layer and the Lightning Network, supported by a new Taproot-powered protocol known as Taproot Assets, developed by Lightning Labs.
This development aims to combine Bitcoin’s decentralization and security with the speed and scalability of the Lightning Network. Once fully integrated, USDt will operate seamlessly on Bitcoin’s base layer and its layer 2 Lightning Network, enabling high-speed, low-cost transactions while maintaining Bitcoin’s robust security and scalability.
USDt, the world’s largest stablecoin, serves over 350 million users. With this integration, developers and users will benefit from Bitcoin’s reliability alongside the efficiency of Lightning-enabled payments. This positions USDt as a crucial component of Bitcoin-based financial systems, especially given Bitcoin’s high demand among institutions and retail traders.
Enhancing Bitcoin’s Functionality with Taproot Assets
Taproot Assets enhances Bitcoin’s functionality by enabling support for tokenized assets like USDt while preserving the blockchain’s decentralized nature. This integration delivers a scalable, seamless payment solution, potentially powering the AI economy and unlocking new use cases, including microtransactions, remittances, and efficient cross-border settlements.
Paolo Ardoino, CEO of Tether, stated, “Tether is committed to driving innovation in 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.”
Collaboration Between Tether and Lightning Labs
Elizabeth Stark, CEO of Lightning Labs, 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.”
Tether and Lightning Labs will continue to collaborate to enhance the ecosystem, ensuring 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.
The announcement was made by Paolo Ardoino and Elizabeth Stark during their fireside chat at the inaugural Plan ₿ Forum in El Salvador. More details about the integration can be found here.
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