Bitcoin and USDT: A new payment era?
Tether’s latest move could reshape how digital dollars are sent and spent
Tether is bringing its USDT stablecoin to Bitcoin, making it easier to send and spend digital dollars using the network. Announced on Jan. 30 at the Plan B conference in El Salvador, the move will allow USDT to work on both Bitcoin’s base layer and its faster Lightning Network.
Tether CEO Paolo Ardoino said the goal is to make payments and remittances simpler. “The goal is to offer practical solutions for remittances, payments, and other financial applications that demand both speed and reliability,” he said.
Lightning Labs CEO Elizabeth Stark highlighted the impact on global transactions. “Millions of people will now be able to use the most open, secure blockchain to send dollars globally,” she said. “It all comes back to Bitcoin.”
The expansion relies on Taproot Assets, a protocol that lets Bitcoin handle assets like stablecoins while using the Lightning Network to settle transactions faster and cheaper. Once fully integrated, USDT will combine Bitcoin’s security with Lightning’s near-instant transfers.
Stablecoins have grown into a $220 billion market, with USDT leading the sector. As of Jan. 30, its market cap stands at $139.4 billion—almost three times that of Circle’s USDC, which is valued at $53.1 billion. In 2024 alone, USDT processed over $10 trillion in on-chain transactions, closing in on Visa’s $16 trillion annual payments.
Tether’s announcement comes just after its move to El Salvador, the only country where Bitcoin is legal tender. However, on the same day, the country’s Legislative Assembly reversed a key part of its Bitcoin Law, making Bitcoin acceptance optional for businesses. The decision aligns with conditions set by the International Monetary Fund for a $1.4 billion loan to support the economy.
