Stablecoin issuer Tether has announced the integration of USDT into Bitcoin’s ecosystem, including the Lightning Network, during the Plan ₿ Forum in El Salvador.
USDT Integration with Lightning Network
The USDT integration into the Lightning Network is developed using the Taproot Assets protocol. This aims to enhance the use of USDT in financial applications by increasing transaction speed and reducing costs. Tether CEO Paolo Ardoino stated that this reinforces Bitcoin's foundational principles of decentralization and security.
Plans for Ecosystem Development
Tether and Lightning Labs plan to continue to work together to support and develop the ecosystem. The integration is expected to expand Bitcoin's use in financial applications, allowing users to make faster and more cost-effective cross-border transactions with USDT.
Tether's Expansion in El Salvador
Two weeks ago, Tether announced its plans to expand into El Salvador after acquiring a DASP license. El Salvador recognizes Bitcoin as legal tender, and recent requirements for mandatory Bitcoin acceptance have been lifted due to an agreement with the IMF.
The integration of USDT with the Lightning Network could significantly impact Bitcoin's financial applications by offering faster and more economical solutions.