YEREVAN (CoinChapter.com) — Tether has added USDT to Bitcoin’s Lightning Network, enabling faster, low-cost stablecoin transactions. The integration connects USDT to Bitcoin’s base layer and Lightning Network, improving payment efficiency while maintaining security.
The move allows USDT transactions to use Bitcoin’s blockchain while benefiting from Lightning’s instant processing. Elizabeth Stark, CEO of Lightning Labs, said,
“Bringing USDT to Bitcoin combines the security and decentralization of Bitcoin with the speed and scalability of Lightning.”
Taproot Assets Enables USDT on Bitcoin Without Centralization Risks
The integration relies on Taproot Assets, a protocol by Lightning Labs that enables tokenized assets like USDT to function on Bitcoin’s network without affecting decentralization.
This protocol improves transaction speed, reduces fees, and enables micro-transactions, remittances, and cross-border payments. By adopting Taproot Assets, Tether expands USDT beyond Ethereum and Tron, adding another layer of functionality.
Tether CEO Paolo Ardoino stated that USDT’s Lightning integration supports Bitcoin’s fundamental principles while enhancing stablecoin payments.
USDT Faces Challenges with EU and US Regulations
Despite expanding into Bitcoin’s ecosystem, Tether continues to face regulatory pressure. The Markets in Crypto-Assets (MiCA) framework in Europe imposes stricter rules on stablecoins, causing several EU-based exchanges to delist USDT.
However, Tether’s global presence remains strong, with 80% of USDT’s trading volume coming from Asia. Axel Bitblaze stated that the EU delisting has had minimal impact, with USDT’s market cap declining by only 1.2%.
In the United States, regulatory uncertainty persists. Brian Armstrong, CEO of Coinbase, said that if new laws require it, the exchange may delist USDT. US regulators continue discussing stablecoin oversight, affecting Tether’s operations.
Tether Expands to El Salvador Amid Regulatory Uncertainty
Tether recently secured a license in El Salvador, a country that supports Bitcoin. The move strengthens USDT’s position in a jurisdiction that embraces digital assets.
The company is also expanding elsewhere. Last week, Tether announced a blockchain academy in Vietnam. Two weeks ago, Tether upgraded USDT on Arbitrum to the USDT0 standard, improving its compatibility with Ethereum.
Arbitrum now leads all Layer-2 networks in stablecoin adoption, with over 1.3 billion USDT minted under the new standard.
As Bitcoin usage grows, USDT’s expansion continues despite regulatory challenges, strengthening its position in the global cryptocurrency market.
