- Tether has launched USDT on Bitcoin’s Lightning Network, aiming to boost transaction speed and cut costs while reinforcing Bitcoin’s role in digital payments.
- Despite EU regulatory scrutiny and delistings, 80% of USDT trading volume comes from Asia, ensuring Tether’s market dominance remains largely unaffected.
Tether has officially introduced its flagship stablecoin, USDT, on Bitcoin’s Lightning Network, reinforcing efforts to integrate the digital dollar with blockchain infrastructure. Holding a substantial market capitalization of $139 billion, USDT continues to lead the stablecoin sector. Expanding onto Lightning is expected to enhance transaction speed while reducing costs.
Tether Bitcoin
Tether Brings USDt to Bitcoin’s Lightning Network, Ushering in a New Era of Unstoppable Technology
Read more: https://t.co/xJVKLHfht0 pic.twitter.com/PfftiXMLSO— Tether (@Tether_to) January 30, 2025
Paolo Ardoino, CEO of Tether, emphasized the company’s dedication to advancing Bitcoin’s ecosystem. The Lightning Network, launched in early 2018, was developed to enable near-instant and cost-efficient Bitcoin payments. Incorporating USDT into this framework represents a strategic initiative to increase adoption and usability.
“Millions of people will now be able to use the most open, secure blockchain to send dollars globally. It all comes back to Bitcoin,” said Elizabeth Stark, CEO of Lightning Labs.
From Omni to Lightning—USDT’s Long Journey
USDT was first launched in 2014 on the Omni layer, a Bitcoin-based protocol originally known as Mastercoin. It was among the earliest attempts to scale Bitcoin for real-world applications. However, the stablecoin later expanded to Ethereum in early 2018 with the ERC-20 version, which proved to be more efficient and quickly gained popularity.
By March 2019, Tether had introduced a version of USDT on the Tron network as well, further diversifying its reach. Binance, one of the top cryptocurrency exchanges, removed support for Omni-based USDT in 2021, signaling the end of its relevance. In August 2023, Tether officially discontinued Omni support, as it accounted for less than 0.3% of the total supply.
Today, USDT is available on 17 different blockchains, including Solana and Avalanche. However, the bulk of its circulation is concentrated on Ethereum and Tron, with $74.4 billion and $59 billion in circulation, respectively. These two blockchains dominate the stablecoin market, with only a fraction of transactions occurring on smaller chains.
EU Scrutiny Challenges to Tether 80% of USDT Trading in Asia
Tether, despite technological advancements, faces increasing regulatory scrutiny. In Europe, the MiCA (Markets in Crypto-Assets) framework imposes stricter controls on stablecoins, complicating compliance. Consequently, several European exchanges have delisted USDT, raising concerns about liquidity and market stability.
Regulatory measures, however, may not significantly alter Tether’s market standing. Industry analyst Axel Bitblaze emphasized that 80% of USDT’s trading volume originates in Asia, minimizing the impact of EU delistings.
“80% of USDT’s trading volume comes from Asia, so the EU delisting won’t have any severe impact. This is evident from USDT’s market cap, which is down by only 1.2%,” claimed Axel Bitblaze.
While uncertainty persists in Europe, Tether maintains dominance across Asia and other global markets, reinforcing its strong presence in the crypto sector. Expansion into Lightning further signals a strategic focus on enhancing utility rather than reacting to short-term regulatory pressures.