Tether Expands USDT to Bitcoin and Lightning Network
San Salvador — Tether, the prominent cryptocurrency firm responsible for the largest stablecoin, is set to launch its $140 billion USDT token on the Bitcoin blockchain. This announcement, made via a post on X on Thursday, marks a significant step in integrating stablecoins with the oldest and most widely recognized cryptocurrency.
Stablecoins represent a burgeoning $200 billion digital asset class, with their values pegged primarily to external assets such as the U.S. dollar. These digital currencies serve as a vital bridge between traditional government-issued money and blockchain-based digital assets. Their popularity is on the rise for everyday applications including payments, savings, and remittances, particularly in emerging markets where financial inclusion is critical.
Despite the rapid growth of stablecoin adoption in recent years, most of the activity and supply remains concentrated on smart contract platforms like Ethereum, Tron, and Solana. However, Tether’s integration of USDT with Bitcoin is made possible through Taproot Assets, an innovative infrastructure that facilitates asset issuance directly on the Bitcoin base layer and enables transfers via the Lightning Network. This scaling platform is designed to provide fast and cost-effective transactions, which makes micropayments more feasible and efficient.
The Taproot Assets protocol, developed by Lightning Labs and launched last year, paves the way for bringing external tokens, including stablecoins, into the Bitcoin ecosystem. This integration could significantly enhance the utility of Bitcoin by offering users new ways to transact and interact with digital assets.
