Tether, the issuer of the popular stablecoin USDT, has announced a significant partnership with Lightning Labs to integrate USDT into the Bitcoin ecosystem. This move aims to increase Bitcoin's market share, which currently stands at a staggering $140 billion.
Tether, which manages USDT for over 10 blockchains, including Ethereum, Tron, and Avalanche, has recorded $10 trillion worth of transactions in the past year. In contrast, Bitcoin's transaction volume was $1.9 billion during the same period. The integration of USDT into the Bitcoin ecosystem is expected to boost the number of transactions significantly.
The integration will occur simultaneously on Bitcoin's base layer and the Lightning Network. Tether CEO Paolo Ardoino has described this move as a thoughtful merger, aiming to create practical solutions for remittances, payments, and other financial applications that require both speed and reliability.
The integration is backed by Taproot Assets, a network that facilitates seamless interactions between stablecoins on Bitcoin and other assets in the network. Lightning Labs CEO Elizabeth Stark believes that this integration will create a new avenue for stablecoins and attract millions of new traders to Bitcoin.
Only 40 hours into the launch, the use cases for stablecoins have already expanded exponentially. Tether's market cap is three times that of its nearest competitor, Circle, which should further strengthen USDT's status and Bitcoin's market share.
