Tether, the issuer of the world’s largest stablecoin, has announced the integration of USDT on Bitcoin’s Lightning Network, enabling instant and low-fee transactions. The move, unveiled at the Plan ₿ Forum in El Salvador, is made possible through a partnership with Lightning Labs and the use of the Taproot Assets protocol.
With this integration, users can now leverage Bitcoin’s security and decentralization while enjoying the fast, scalable payments of the Lightning Network. Tether CEO Paolo Ardoino emphasized the impact of the development, stating:
“By enabling USDT on the Lightning Network, we reinforce Bitcoin’s core principles while creating efficient solutions for remittances, payments, and financial applications requiring speed and reliability.”
Lightning Labs CEO Elizabeth Stark echoed this sentiment, calling it a breakthrough for stablecoins:
“Bringing USDT to Bitcoin combines the best of both worlds—Bitcoin’s security and decentralization with Lightning’s speed and scalability. Millions will now be able to send dollars globally on the most secure blockchain.”
Tether’s latest expansion follows its growing investment in Bitcoin, including adding BTC to its reserves and launching mining operations in El Salvador. This development also comes after Tether discontinued USDT issuance on certain networks in 2023, including Omni, due to low demand. With most USDT transactions now happening on Ethereum and Tron, this move signals a renewed push to bring stablecoin utility back to the Bitcoin ecosystem.
Also read: AUSD Stablecoin Debuts on Solana, Surpasses $20M in Issuance
