Tether Integrates USDT with Bitcoin Network

Stablecoin issuer Tether plans to bring its token USDT onto the Bitcoin base layer and Layer 2 protocol, Lightning Network.

The integration is supported by Taproot Assets, a network that enables interoperability between stablecoins and other assets on the Bitcoin network. Taproot Assets is developed by Lightning Labs, the same firm that’s working on the Bitcoin-based payments protocol, Lightning Network.

Tether CEO Paolo Ardoino stated, “By enabling USDT on the Lightning Network, we reinforce Bitcoin’s foundational principles of decentralization and security while providing practical solutions for remittances, payments, and other financial applications requiring speed and reliability,” in an interview with The Block.

This move follows various USDT expansions to other networks such as Celo, The Open Network (TON), and Aptos. Under Ardoino’s leadership, Tether has increasingly focused on Bitcoin, adding the asset to its balance sheet and launching mining operations in El Salvador.

In 2023, Tether ceased issuing its stablecoins on the Omni, Kusama, and Bitcoin Cash SLP networks due to low demand. Omni, a Bitcoin “meta-layer” created in 2013, was the first network USDT was launched on. Currently, the majority of USDT is issued on the Ethereum and Tron blockchains, as detailed on Tether’s transparency page.

USDT is the largest stablecoin by market share, controlling nearly $140 billion, or 66%, of the total approximately $212 billion USD-pegged stablecoin supply, according to The Block’s Data Dashboard.