Paolo Ardoino, the CEO of Tether, has asserted that USDT on Bitcoin Lightning is the optimal platform for large-scale transactions. He believes it is superior to other blockchains due to its availability on the Bitcoin network, which he refers to as its “natural habitat.” Ardoino’s comments come amid plans to integrate the stablecoin on the Bitcoin network via its layer 2 Lightning network.
In a recent interview with Scott Melker, host of the Wolf of All Streets, Ardoino confirmed that the Tether stablecoin will soon be available on the Lightning network. He was quick to remind listeners of USDT’s origins on the Bitcoin network, where it was initially built as an Omni-layer. However, due to diminishing demand, the issuance of USDT on Omni was discontinued. Despite this, Ardoino is confident that the stablecoin’s return to the Bitcoin network is imminent.
The Lightning Lab had previously announced a partnership with Tether on January 30. As part of this collaboration, plans were revealed to integrate USDT onto the blockchain via Taproot Assets. Ardoino’s recent confirmation of these plans suggests that the integration is progressing steadily.
Ardoino was emphatic in his praise for the Bitcoin Lightning network, citing its superiority over other layer 2 networks. He pointed out that many layer 2 networks, particularly those on Ethereum, lack validators on the chain, thus complicating transactions. Conversely, the peer-to-peer Bitcoin Lightning network utilizes nodes for transaction processing, thereby making transactions more readily accessible.
Moreover, Ardoino highlighted the decentralized nature of the Bitcoin Lightning network. He explained that as the network uses payment channels for both on-chain and off-chain transactions, users can maintain anonymity. This stands in stark contrast to Ethereum’s layer 2 single-share state, where every validator can access all individual data on the blockchain.
Melker noted that these advantages are leading to a trend where innovations initially built on other chains are gradually returning to Bitcoin. This observation is supported by recent developments such as Cardano EMURGO’s collaboration to provide Bitcoin network users with access to decentralized finance (DeFi) and smart contract features through the BOS Grail bridge.
Ardoino’s comments offer an insightful look into the future of Tether and the stablecoin market. His confidence in the Bitcoin Lightning network serves as a strong endorsement for its potential in handling large-scale transactions, thereby setting the stage for further growth and innovation in the space.
