Tether Brings USDt to Bitcoin's Lightning Network, Boosting Liquidity
Tether, a leading stablecoin issuer, has partnered with Lightning Labs to integrate USDt, the largest US dollar stablecoin, into the Bitcoin ecosystem. This move is expected to enhance Bitcoin's role in everyday financial systems and boost the liquidity of the Lightning network.
Tether, a private company, has announced this integration, which will cover both the base layer and the Lightning network of Bitcoin. USDt, representing the value of a US dollar and backed mainly by US Treasury bonds, will facilitate transactions over the Bitcoin network and Lightning technology. With a market capitalization of around $140 billion and over 350 million users worldwide, USDt's integration is set to increase the liquidity of the Lightning network.
The integration is powered by Supra, which enables USDT transfer over the Bitcoin network and Lightning technology. Tether uses the Taproot Asset Protocol developed by Lightning Labs for this implementation. This move aligns with US President Donald Trump's pro-crypto policy, which encourages the promotion of legitimate and backed stablecoins globally. Notably, Tether first issued USDt on the Bitcoin blockchain in 2014, but later expanded to other blockchains.
The integration of USDt into the Bitcoin ecosystem by Tether and Lightning Labs is a significant step towards wider adoption of Bitcoin in everyday financial systems. This move is expected to enhance the liquidity of the Lightning network, benefiting both users and the broader crypto ecosystem.
Read also:
- Unveiling the Less-Discussed Disadvantages of Buds - Revealing the Silent Story
- Grid Risk Evaluation Strategy By NERC Outlined, Focusing on Potential Threats from Data Centers
- Rapid Expansion in Organic Rice Protein Market Projected at 15.6% Through 2034
- Jaguar Land Rover's Month-Long Production Halt After Cyber Attack Could Cost Billions
