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Tether, the issuer of the world’s largest stablecoin (USDT), has announced its integration with the Lightning Network, allowing for faster and more cost-efficient transactions. The integration was unveiled during the Plan ₿ Forum conference in El Salvador, marking a major step in enhancing Bitcoin’s scalability and financial utility.
USDT Now on Lightning Network
[embed]https://twitter.com/WalkerAmerica/status/1885080549020012690[/embed] 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.
Industry Leaders Praise the Move
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.
Tether Expands Bitcoin Focus
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. Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.