The Bitcoin network has grown to a vibrant Web3 ecosystem with over $7.1 billion in TVL, facilitated by the Lightning network and the Taproot-enabled protocols.
Tether Limited Inc, the leading issuer of fiat-backed stablecoins based in El Salvador, announced the integration of its USDT USDT $1.00 24h volatility: 0.0% Market cap: $148.44 B Vol. 24h: $30.66 B , the largest US dollar-backed stablecoin, with the Bitcoin (BTC) ecosystem. The integration of Tether’s USDT with the Bitcoin network will entail both the base layer and the Lightning network.
According to the announcement, Tether collaborated with Taproot Assets, a Taproot-powered protocol for issuing assets on the Bitcoin network to enable seamless transferring over the Lightning Network, a layer two scaling solution for BTC BTC $95 001 24h volatility: 0.0% Market cap: $1.89 T Vol. 24h: $23.07 B . As a result, Tether’s USDT can be transferred across the Bitcoin network with reliable security at a fractional cost.
“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,” Paolo Ardoino, CEO of Tether, noted.
Elizabeth Stark, the CEO of Lightning Labs, highlighted that the strategic integration of Tether’s USDT on Bitcoin will further strengthen the US dollar’s dominance as the global reserve currency through the most secure blockchain. Furthermore, Tether has grown to be the most traded digital asset, with a market cap of about $139 billion and a 24-hour average trading volume of about $64 billion.
Market Impact of Tether’s USDT Integration with Bitcoin Network
The strategic integration of Tether’s USDT on the Bitcoin network will have a huge impact on Bitcoin’s web3 ecosystem, Tether’s revenue streams, and El Salvador’s implementation of BTC as legal tender. On the top list, the Bitcoin network has grown to a vibrant DeFi ecosystem with a total value locked of about $7.2 billion, from dozens of web3 protocols such as Babylon and Lightning Network.
With over 768k daily active addresses, Bitcoin’s DeFi ecosystem will significantly benefit from the integration of Tether’s USDT. Moreover, reliable stablecoins have helped other layer-one chains, led by Ethereum (ETH), Solana (SOL), and Tron (TRX), among others, thrive in the tokenization sector.
The integration of Tether’s USDT with BTC will have a palpable impact on the company’s revenues in the coming quarters. Moreover, BTC is a top-tier layer one chain with reliable liquidity for mainstream adoption by retail and institutional investors.
Meanwhile, El Salvador stands to benefit from the strategic integration of Tether’s USDT with BTC in the long haul. The country has grown its GDP significantly in the past few years through the adoption of Bitcoin in its strategic national reserves.
The launch of USDT on Bitcoin will help the Nayib Bukele administration implement seamlessly the adoption of BTC as a legal tender alongside the US dollar.
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