Tether announced that USDT will be integrated into the Bitcoin ecosystem, including both its base layer and the Lightning Network.

Stablecoin issuer Tether announced Jan. 30 that USDT will be integrated into the Bitcoin ecosystem, including both its base layer and the Lightning Network. The company said the integration combines Bitcoin’s “unmatched” decentralization and security with the Lightning Network’s scalability and speed.

According to a statement, the USDT integration, developed by Lightning Labs, is supported by a new Taproot-powered protocol and Taproot Assets. The statement added that when fully integrated, the stablecoin will operate on the base layer and its layer-two (L2) Lightning Network.

Paolo Ardoino, Tether’s chief technology officer, said the integration of tether (USDT) into the Bitcoin network showcases the stablecoin issuer’s commitment to innovation.

“Tether is committed to driving innovation in the Bitcoin ecosystem. By enabling USDt on the Lightning Network, we are not only reinforcing Bitcoin’s foundational principles of decentralization and security but also creating practical solutions for remittances, payments, and other financial applications that demand both speed and reliability,” Ardoino said.

Elizabeth Stark, CEO of Lightning Labs, described the USDT integration with Bitcoin as a new era for stablecoins. She added that the combination of the Bitcoin base layer and the Lightning Network will allow millions to leverage the pioneering blockchain.

“Millions of people will now be able to use the most open, secure blockchain to send dollars globally. It all comes back to Bitcoin,” Stark said.

According to the statement, the integration of USDT with Taproot Assets enhances Bitcoin’s functionality, enabling support for tokenized assets while maintaining decentralization. This scalable solution unlocks new use cases, such as microtransactions, remittances and efficient cross-border settlements, powering the AI economy.

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