Quickly understand the history and background of various well-known coins

Tether's USDT Joins Bitcoin's Lightning Network: Faster, Cheaper Payments Ahead

Coin WorldFriday, Jan 31, 2025 6:20 am ET

1min read

Tether, the world's leading stablecoin issuer, has announced the integration of its flagship stablecoin, USDT, onto Bitcoin's Lightning Network. This strategic move, revealed at the Bitcoin-focused Plan B conference in El Salvador, enables faster and cheaper payments for users worldwide.

The integration utilizes the Taproot Assets protocol, introduced in 2022, to extend Bitcoin's capabilities for supporting tokenized assets. Elizabeth Stark, CEO of Lightning Labs, expressed enthusiasm for the development, stating, "Millions of people will now be able to use the most open, secure blockchain to send dollars globally."

Lightning Labs highlighted that this upgrade will benefit merchants already accepting Bitcoin payments through Lightning, enabling seamless USDT transactions using the same infrastructure. Tether's expansion onto the Lightning Network is a strategic move to broaden its stablecoin payment ecosystem, particularly in emerging markets where stablecoins often provide a hedge against currency devaluation.

Tether's integration with the Lightning Network comes at a time of growing institutional and retail interest in Bitcoin. With over 350 million users worldwide, USDT's integration with Lightning will enable seamless, fast, and cost-effective payments. Developers and users alike will gain from Bitcoin's reliability combined with the efficiency of Lightning transactions.

Paolo Ardoino, CEO of Tether, emphasized that this move aligns with the company's mission to drive innovation in the Bitcoin ecosystem. He stated that enabling USDT on the Lightning Network upholds Bitcoin's decentralization and security while improving transaction speed and reliability for everyday payments.

Despite its advancements, Tether continues to face regulatory scrutiny. The company has taken steps to strengthen its global presence, recently securing a major license in El Salvador, a country known for its pro-Bitcoin policies. This move has led to Tether relocating there, further solidifying its position in a jurisdiction that welcomes digital assets.

While Tether expands and adapts to new environments, its focus remains on maintaining USDT's dominance in the market, ensuring stability and usability even as regulations evolve. The integration of USDT onto the Lightning Network is a significant step towards achieving this goal, offering users a faster, cheaper, and more secure payment experience.

Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.