Tether stock to expand on Bitcoin network and Lightning

Published 31/01/2025, 10:36
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Tether, the company behind the largest stablecoin by market share, USDT, announced plans to expand its token onto the Bitcoin base layer and the Layer 2 protocol Lightning Network. This move is supported by Taproot Assets, a network fostering interoperability between stablecoins and other assets within the Bitcoin ecosystem, developed by Lightning Labs, which is also behind the Lightning Network.

Tether’s integration with the Lightning Network is aimed at enhancing the decentralization and security principles foundational to Bitcoin. Tether CEO Paolo Ardoino emphasized the practical applications this move could have for remittances, payments, and other financial services that require both speed and reliability.

Tether’s ongoing focus on Bitcoin has been evident under Ardoino’s leadership, with the inclusion of Bitcoin on its balance sheet and the initiation of mining operations in El Salvador.

The expansion to the Bitcoin network is part of Tether’s broader strategy of extending USDT’s reach, which has previously seen the token added to networks like Celo, The Open Network (TON), and Aptos. In contrast to these expansions, Tether ceased issuing stablecoins on the Omni, Kusama, and Bitcoin Cash SLP networks in 2023 due to low demand. It’s notable that Omni was the inaugural network for USDT issuance following its launch.

USDT currently dominates the stablecoin market with a nearly $140 billion valuation, accounting for approximately 66% of the total $212 billion USD-pegged stablecoin supply. The majority of Tether’s issuance now occurs on the Ethereum and Tron blockchains, as detailed on the company’s transparency page.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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