This development is made possible through a partnership with Lightning Labs and the Taproot Assets protocol, which enables the issuance of stablecoins and other assets on the Lightning Network. By leveraging Bitcoin’s layer-2 scaling solution, USDT transactions will now be cheaper and faster, making stablecoins more efficient for global payments and remittances.
Paolo Ardoino, CEO of Tether, emphasized that the integration strengthens Bitcoin’s principles of decentralization and security, while also enhancing practical use cases for USDT in remittances and payments.
Meanwhile, Elizabeth Stark, CEO of Lightning Labs, highlighted that this move enables millions to use Bitcoin’s secure and scalable network to send dollars globally.
Under Ardoino’s leadership, Tether has increased its focus on Bitcoin-related initiatives, including holding BTC in its reserves and launching mining operations in El Salvador.
This integration follows Tether’s decision in 2023 to discontinue USDT issuance on certain networks, such as Omni, due to low demand. Currently, most USDT tokens are issued on Ethereum and Tron, but the Lightning Network adoption could signal a shift toward Bitcoin scalability solutions.