Tether, the crypto firm behind the world’s largest stablecoin, is bringing its $140 billion USDT token to Bitcoin.
At the Plan B conference in San Salvador, Tether CEO Paolo Ardoino announced that the integration of USDT into Bitcoin and Lightning is designed to provide “practical solutions for remittances, payments, and other financial applications that require both speed and reliability.”
USDT integration on Bitcoin marks a new era for stablecoins
USDT, the company’s dollar-backed stablecoin, will soon be fully operational across both Bitcoin’s base layer and the Lightning Network, a scaling network for Bitcoin, as Tether CEO Paolo Ardoino announced Thursday at a Bitcoin conference in El Salvador.
For Tether and Bitcoin, two powerful cryptocurrency players who had not yet united, the unification represents a critical turning point. With a market valuation of about $140 billion, USDT is by far the most popular stablecoin in the world. It is used by hundreds of millions of people globally as a safe way to connect traditional banking with the cryptocurrency economy.
Bitcoin, on the other hand, is by far the world’s largest and most influential cryptocurrency. However, the Bitcoin network has been slow to attract on-chain users, as it was not initially designed to support decentralized applications.
Scaling networks like the Lightning Network have filled this gap, making layer-2 transactions on Bitcoin fast and affordable and enabling the integration of assets like USDT into the Bitcoin ecosystem.
“Today marks a new era for stablecoins,” said Elizabeth Stark, CEO of Lightning Labs, the leading developer of infrastructure on the Lightning Network, in a statement on Thursday. Lightning Labs developed the protocol that enables USDT to integrate with the Bitcoin network.
According to Stark, millions of people will now be able to send dollars globally using the most open, secure blockchain.
Tether faces increased scrutiny amid growing role in global finance
USDT is available on 17 other blockchain networks, including Ethereum and Solana. As cryptocurrency continues integrating with mainstream finance, stablecoins have become more essential than ever in linking both sectors. Tether remains the most widely used stablecoin, providing users an easy way to store crypto funds in a stable asset pegged to the U.S. dollar.
Stablecoins, especially Tether, have become increasingly scrutinized as their influence on the global economy grows. On Wednesday, lawmakers questioned Howard Lutnick, President Donald Trump’s nominee for Commerce Secretary, about his close ties to Tether, a payment method used by retail users and criminal organizations.
Lutnick’s Wall Street firm, Cantor Fitzgerald, currently holds billions of dollars in collateral assets for Tether, which theoretically ensures the stablecoin maintains its dollar peg. However, no independent agency has yet verified whether Cantor and Tether are accurately reporting the size of that collateral reserve.
During the hearing, Lutnick acknowledged the need for the United States to implement a comprehensive auditing process for stablecoin issuers like Tether, given the growing importance of maintaining the stability of such assets.
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Source: https://www.cryptopolitan.com/tethers-usdt-set-to-launch-on-bitcoin/