Tether Integrates USDT with Bitcoin’s Base Layer and Lightning Network
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TLDR Tether announced integration of USDT with Bitcoin’s base layer and Lightning Network, enabling faster transactions and new payment possibilities using Taproot Assets protocol The integration combines Bitcoin’s security with Lightning Network’s speed, allowing seamless operation across both networks while reducing transaction costs Tether currently dominates the $220 billion stablecoin market with $139.4 billion market cap, processing over $10 trillion in on-chain volume in 2024 The announcement was made at Plan B conference in El Salvador, where Tether recently relocated, though El Salvador just amended its Bitcoin Law to make merchant acceptance optional The move aims to enhance Bitcoin’s scalability and expand Layer 2 adoption while providing practical solutions for remittances and payments Tether, the world’s largest stablecoin issuer, announced on January 30, 2025, that it will integrate its USDT stablecoin with Bitcoin’s base layer and Lightning Network. The announcement came during the Plan B conference in El Salvador, marking a major development in the stablecoin’s expansion beyond traditional blockchain networks. The integration will use Taproot Assets, a protocol developed by Lightning Labs that enables asset issuance on Bitcoin’s base layer while allowing transactions to settle on the Lightning Network. This protocol, released in 2023, creates a bridge for stablecoins and other digital assets to utilize Bitcoin’s infrastructure. Today we’re announcing that Tether is coming to bitcoin and Lightning! 💸⚡ With the security and decentralization of bitcoin and the speed and scalability of Lightning, USDT will bring hundreds of millions of users and trillions in volume. It all comes back to bitcoin. pic.twitter.com/Hp6qQCpAVl — Lightning Labs⚡️🌐 (@lightning) January 30, 2025 USDT’s integration aims to make micropayments more efficient and reduce transaction costs. Once fully implemented, users will be able to conduct USDT transactions across both Bitcoin’s main chain and its Lightning-powered layer 2 network, combining the security features of Bitcoin…
Filed under: News - @ January 31, 2025 4:27 pm