As per reports by Cointelegraph, stablecoins that utilize the Bitcoin network are getting closer to becoming a reality thanks to new features developed by Lightning Labs using the Taproot upgrade from late 2021.

Elizabeth Stark, CEO of Lightning Labs, discussed the recent advancements made by the Bitcoin development company at the FT Live’s Crypto and Digital Assets Summit in London. During the event, the firm's co-founder provided a detailed explanation of Bitcoin and the Lightning Network to a crowd of traditional finance professionals.

One of the main focuses of Lightning Labs is the Taproot assets protocol, which is being developed to enable stablecoins and tokenized assets on the Bitcoin network. Stark mentioned that significant progress has been made by developers towards this objective, with the recent testing of transactions on Lightning network showing promising results.

In October, an initial portion of the code was released, followed by a successful demonstration of the first-ever transaction of an asset on Lightning. The goal of the initiative is to introduce crypto dollars and stablecoins on the Bitcoin blockchain. Stark highlighted that compared to other blockchains that suffer from high fees and other challenges, Bitcoin’s network is better suited to handle stablecoins due to its high level of security and decentralization.