Tether links USDT with Bitcoin, ushering in the era of fast payments and DeFi

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Stablecoin issuer Tether plans to launch USDT on the Bitcoin and Lightning Network, enabling high-speed, scalable transactions on the world's most valuable blockchain.

The company stated in a press release that by facilitating stablecoin transactions directly on Bitcoin and its scalability-focused second-layer Lightning Network, Tether is creating 'new opportunities' for broader applications of Bitcoin in everyday financial systems.

Tether CEO Paolo Ardoino said: 'By enabling USDt on the Lightning Network, we not only reinforce the fundamental principles of decentralization and security of Bitcoin, but also create practical solutions for remittances, payments, and other financial applications that require speed and reliability.'

The company pointed out new use cases such as AI payments and micropayments hindered by Bitcoin's 10-minute transaction completion time. Efficient and low-cost cross-border payments are another potential use.

USDT is the largest stablecoin in the cryptocurrency space, with a market capitalization of $140 billion.

Bringing DeFi to Bitcoin

Lightning Labs CEO Elizabeth Stark and Business Development Lead Ryan Gentry stated in a blog post: 'Tether on Lightning will power the upcoming wave of AI agent trading, allowing machines to pay each other instantly and in bulk. From AI agents to self-driving cars, everything will use stablecoins to transact with one another.'

They added that USDT on Bitcoin will enable the creation of new financial products in Bitcoin's emerging decentralized finance (DeFi) and tokenized ecosystem, 'including new computation platforms, lending, trading, and on-chain financial assets.'

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