Tether Integrates USDt With Bitcoin’s Lightning Network

Tether has announced the integration of its stablecoin, USDt, into Bitcoin’s ecosystem, utilizing both its base layer and the Lightning Network. 

This expansion is powered by Taproot Assets, a protocol developed by Lightning Labs, enabling tokenized assets to function within Bitcoin’s framework while leveraging Lightning’s scalability.

With this integration, USDt transactions are expected to be faster and more cost-efficient while maintaining Bitcoin’s security. 

Tether, the largest stablecoin issuer, reports that USDt serves over 350 million users globally. 

The initiative aims to support applications such as microtransactions, remittances, and cross-border payments.

Paolo Ardoino, CEO of Tether, stated: 

“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.”

Elizabeth Stark, CEO of Lightning Labs, added: 

“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 plan to continue collaborating to facilitate adoption and developer support. 

The announcement was made at the Plan ₿ Forum in El Salvador, where Ardoino and Stark discussed the project’s objectives.

The long-term success of this integration will depend on infrastructure development, user adoption, and regulatory considerations as Bitcoin’s role in digital finance continues to evolve.