Tether Expands Its USDT Stablecoin to the Bitcoin Network via the Lightning Labs Integration

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.

Stablecoin giant Tether is integrating its USDT stablecoin with the Bitcoin network through the Lightning Network, a layer-2 payment protocol 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, the company behind the Lightning Network, developed the integration using the Taproot Assets protocol, which has enabled 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 will allow businesses that use the Lightning Network for Bitcoin payments to add USDT as an option without needing additional infrastructure. Stark highlighted that this will enable millions of users to send dollars globally through Bitcoin’s network, while also providing a stable financial tool for those in emerging markets facing currency devaluation.

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Beyond payments, Lightning Labs envisions this technology facilitating transactions between AI systems and autonomous vehicles, as well as 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.