Tether has made a landmark move by integrating its $140 billion USDT stablecoin with Bitcoin’s Lightning Network. Announced at the Plan B conference in El Salvador, this integration aims to revolutionize cross-border payments by leveraging Bitcoin’s security and Lightning’s speed.
Tether made $13 billion in net income in 2024, which places it ahead of the world’s largest asset manager, BlackRock which made about $6 billion in the same year.
Tether’s reserves remain unaudited, with critics citing transparency gaps.
How It Works: Taproot Assets and Lightning Integration
The integration is powered by Taproot Assets, a protocol developed by Lightning Labs that enables tokenized assets like USDT to operate on Bitcoin’s base layer while settling transactions via the Lightning Network.
For merchants and developers, this means existing Lightning infrastructure can now handle USDT without upgrades.
Why This Matters for Bitcoin and Stablecoins
- Bitcoin has traditionally been seen as a “store of value,” but USDT integration positions it as a multi-asset network for everyday payments.
- Lightning’s transaction throughput ($10 trillion processed by USDT in 2024) rivals traditional payment giants like Visa.
