Tether Brings USDT to Bitcoin via Lightning Network

Tether is expanding its stablecoin, USDT, to the Bitcoin network through the Lightning Network, a move designed to enhance Bitcoin’s payment capabilities.

The announcement was made by Tether CEO Paolo Ardoino and Lightning Labs CEO Elizabeth Stark at the Plan B conference in San Salvador on January 30.

Lightning Labs developed the integration using the Taproot Assets protocol, which has allowed Bitcoin to support tokenized assets since 2022. With a market cap of $139.4 billion—nearly triple that of Circle’s USDC —Tether continues to dominate the stablecoin market. In 2024 alone, it processed $10 trillion in transactions, edging closer to Visa’s $16 trillion.

The new integration allows businesses using the Lightning Network for Bitcoin payments to add USDT as an option without needing additional infrastructure. Stark emphasized that this will enable millions of users to send dollars globally through Bitcoin’s network while also providing a reliable financial tool for those in emerging markets facing currency devaluation.

Beyond payments, Lightning Labs envisions this technology facilitating transactions between AI systems and autonomous vehicles, along with enabling microtransactions on Lightning.

The move follows Tether’s recent decision to relocate to El Salvador, the only country where Bitcoin is legal tender. While El Salvador introduced the Lightning-enabled Chivo Wallet in 2021, adoption has been mixed. The government initially required businesses to accept Bitcoin but later made it voluntary as part of a $1.4 billion loan agreement with the IMF.