Tether will launch its flagship stablecoin, USDT, on the Bitcoin blockchain and the Lightning Network, making it available on the infrastructure that powers the world’s largest cryptocurrency. This move expands the reach of the world’s most dominant stablecoin, which holds nearly $140 billion in market share.
Tether processed $10 trillion worth of transactions last year, while the Bitcoin network processed over $19 billion. For Tether’s part, the crypto firm manages USDT across more than 10 blockchains, including Ethereum, Tron, Solana, and Avalanche. Most stablecoins are built on these blockchains, which primarily operate on a smart contract infrastructure.
A Formidable Base
Tether’s integration with the Bitcoin Network was made possible by the Taproot Assets protocol, which was launched by Lightning Labs. This platform allows digital assets to be issued on the Bitcoin base layer and transferred over the Lightning Network.
The integration with the Bitcoin and Lightning networks represents a significant step that will expand Tether’s already formidable user base by millions. According to Cointelegraph, merchants accepting Bitcoin over Lightning will be able to add USDT as a payment option using the same infrastructure.
Lightning Labs CEO Elizabeth Stark told Cointelegraph that, “this integration also brings Bitcoin to the many users in emerging markets who rely on stablecoins regularly as a hedge against the devaluation of their local currencies and savings.”
Cementing Its Status
The use cases for stablecoins continue to expand, driving the rapid worldwide adoption of tokens. While new stablecoins are issued every day, Tether’s market capitalization is nearly three times that of its closest rival, Circle. The integration with the Bitcoin network should solidify USDT’s status as the forerunner in the segment.
In addition to stablecoins, the Taproom Assets protocol supports the transfer of tokenized assets. Tokenization has been another rapidly growing segment in the digital assets industry, fueled by the strong interest of many of the world’s largest institutions.
Tether launched its own long-awaited tokenization platform, Hadron, last year. Hadron currently supports the Ethereum, Avalanche, and Liquid by Blockstream blockchains, but the company said it plans to expand the platform’s reach.
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