Tether, the issuer of the world’s most widely used stablecoin, has announced the integration of its USDT into the Bitcoin ecosystem and the Lightning Network. The integration promises to merge Bitcoin’s unparalleled decentralization and security with the Lightning Network’s speed and scalability, transforming the role stablecoins can play within the Bitcoin ecosystem.
On January 30, Tether CEO Paolo Ardoino and Lightning Labs CEO Elizabeth Stark unveiled their partnership at the Bitcoin-focused Plan B conference in San Salvador, El Salvador.
Tether to Provide Security, Speed & Reliability
In a blog post, Tether noted that Lightning Labs, the company behind the Lightning Network, developed the solution using the Taproot Assets protocol. Introduced in 2022, the protocol enhanced the Bitcoin network’s capabilities to support tokenized assets.
With over 350 million users on Tether, developers and consumers will benefit from Bitcoin’s reliability, paired with the efficiency and flexibility of Lightning-enabled payments.
Commenting on the latest integration, Paolo Ardoino, CEO of Tether, said:
“Tether is committed to driving innovation in the Bitcoin ecosystem. 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 that thanks to Bitcoin, millions can now use the most open and secure blockchain to send dollars worldwide.
According to the announcement, Tether and Lightning Labs will continue collaborating to strengthen the ecosystem, ensuring smooth adoption and strong support for developers and users.
The stablecoin issuer said that while its USDT becomes operational on the Lightning Network, its incorporation will unlock new opportunities for Bitcoin’s wider adoption in everyday financial systems.
According to CoinGecko, Tether’s USDT is the largest stablecoin, boasting a market cap of over $139.4 billion—nearly three times the size of its closest competitor, Circle’s USD Coin, which has a market cap of $53.1 billion.
Tether Relocates to El Salvador
The latest development came after Tether moved its operations to El Salvador, the first country to introduce BTC as a legal tender.
The stablecoin issuer noted that El Salvador’s forward-thinking policies, favorable regulatory environment, and growing Bitcoin-savvy community have made it an ideal destination for companies leading the digital finance revolution.
