Tether is launching its USDT stablecoin, valued at $140 billion, on the Bitcoin and Lightning Networks to enhance its role in the Bitcoin financial ecosystem. This integration utilizes Lightning Labs' Taproot Assets protocol, allowing for USDT issuance on Bitcoin’s base layer and transactions via the Lightning Network, which promotes faster and cheaper payments. The move signifies a shift for stablecoins that have mainly operated on smart contract platforms like Ethereum, Tron, and Solana. Stablecoins, a $200 billion digital asset class mostly pegged to the U.S. dollar, are becoming increasingly vital for payments, savings, and remittances, especially in developing countries. The Taproot Assets protocol supports the introduction of external tokens like USDT to the Bitcoin ecosystem, facilitating more cost-efficient micropayments. This development illustrates the growing integration of stablecoins within the broader cryptocurrency market, aiming to leverage Bitcoin’s infrastructure for enhanced transaction capabilities.

Source 🔗