Bitcoin News Today: Tether Bolsters Bitcoin Payments Push With $8M Speed Investment

Tether's $8 Million Investment in Speed to Advance Stablecoin Transactions on Bitcoin's Layer-2

Tether, the world's largest stablecoin issuer, led an $8 million investment in Speed, a Bitcoin Lightning Network-based payments startup, to advance the adoption of stablecoin transactions on Bitcoin's layer-2 infrastructure according to reports. The funding round also included Ego Death Capital, a Bitcoin ecosystem-focused venture capital firm. Tether's CEO, Paolo Ardoino, praised Speed's ability to integrate the Lightning Network with stablecoins like USDT to enable fast,

low-cost, and globally accessible payments according to the report.

The investment aligns with Tether's broader strategy to expand the utility of its USDT stablecoin beyond trading and into real-world commerce. Speed's platform, which includes the Speed Wallet and Speed Merchant products, serves 1.2 million users and processes over $1.5 billion in annual payments. Tether emphasized that the startup's architecture demonstrates how Lightning and stablecoins can operate together to reduce friction in financial transactions.

Speed's adoption of the Lightning Network and stablecoin settlement provides a compelling case for Bitcoin's potential in mainstream commerce. The company's infrastructure allows users to choose between the speed of Lightning transactions and the price stability of USDT, catering to both individuals and enterprises according to the analysis. By leveraging this technology, Tether aims to strengthen Bitcoin-based financial rails and broaden the utility of its stablecoin.

Strategic Expansion and Tether's Diversification

Tether has been aggressively diversifying its investment portfolio beyond stablecoin issuance and Bitcoin mining. The company now backs over 140 businesses across AI, energy, finance, and even sports teams according to recent reports. The investment in Speed adds to Tether's growing portfolio of Bitcoin-focused startups, including recent funding rounds in a robotics company and a Bitcoin-backed lender.

Tether's financial position has also strengthened significantly. The firm reported profits of more than $10 billion in the first three quarters of 2025, continuing a streak of record profits from its USDT operations. These earnings, largely from interest on US Treasury bills backing the stablecoin, have enabled Tether to fund aggressive expansion into new markets and technologies.

Implications for Bitcoin's Infrastructure

The integration of stablecoins with the Lightning Network marks a pivotal development in Bitcoin's evolution as a payments system. By enabling instant and low-fee transactions with stablecoin settlement, Speed's platform bridges the gap between Bitcoin's volatility and the need for price stability in commerce according to the report. Tether's investment signals confidence in the scalability and viability of Bitcoin-rooted networks for mainstream use.

Speed's CEO, Niraj Patel, emphasized that the startup is moving crypto from speculative use cases to functional, global payments. The platform's infrastructure combines the speed of Lightning with the universal accessibility of stablecoins, creating a scalable solution for consumers, creators, and merchants according to the analysis. As more enterprises adopt Bitcoin-based payment systems, the demand for infrastructure like Speed's is expected to grow.

Broader Market Trends and Competition

Tether's move comes amid broader industry trends toward decentralized payment solutions. Visa recently announced support for stablecoin settlements using Circle's USDC token, reflecting growing institutional interest in stablecoin-based payment rails. Meanwhile, Mastercard and other major players are also testing stablecoin integrations. Tether's investment in Speed positions the company to compete directly with these legacy payment systems by offering a faster, cheaper, and more decentralized alternative.

The Lightning Network has seen increased adoption following Tether's announcement to bring USDT to Bitcoin's base layer and Lightning Network via Lightning Labs' Taproot Assets protocol. This development allows USDT to be issued on Bitcoin and routed over Lightning, reducing costs and settlement times for remittances, small-value payments, and cross-border transfers. As consumer and enterprise demand for stablecoin payments grows, Tether's infrastructure investments are likely to play a key role in shaping the future of digital money.

What This Means for Investors

For investors, Tether's latest move underscores the company's commitment to expanding the use cases for stablecoins and Bitcoin. The investment in Speed represents a strategic bet on the long-term utility of Bitcoin as a global payment network. Tether's CEO emphasized that the company is focused on backing infrastructure that reduces friction in payments and expands access to reliable settlement rails according to the statement.

The broader cryptocurrency market, however, faces challenges. Bitcoin's price has declined in recent weeks, trading around $86,100 as of December 16, 2025 according to market analysis. Analysts are closely watching whether the growing adoption of stablecoin payments can provide a tailwind for Bitcoin's price. The integration of stablecoins into mainstream commerce could drive demand for Bitcoin as a settlement asset, offering potential upside for investors.

Tether's expansion into new sectors and its continued dominance in the stablecoin market position it as a key player in the evolving financial landscape. As the company continues to invest in infrastructure and innovation, the financial ecosystem may see a shift toward Bitcoin and stablecoin-based payment solutions.