Tether (USDT) upped-the-ante in the battle to become the top stable coin this week after announcing plans to issue on the Lightning Network in the coming months. The news comes at a time of peak Lightning Network adoption and many see the news as a good sign for both projects moving forward.
Tether – A Long Time Coming
Interestingly, Bitfinex discussed Lightning Network integration as far back as April 2017. In this Tether update post, the company laid out its future strategies. These strategies included issuing Tether on multiple blockchains such as Ethereum, Litecoin, and the Lightning Network.
The post discusses plans to issue other tokens on the Tether network as well. Notably, it was at this time that Tether first issued its EURO counterpart, a stable token called EURT. Just like USDT, EURT is backed by fiat. Today EURT is issued on the Stellar Lumens network and is a major stable coin in the EU market.
Nowadays, Tether issues on a number of blockchains including EOS, Omni Layer, TRON, ETH, LTC and starting in two weeks, Blockstream's Liquid. Issuing USDT on these blockchains strengthens the company's positioning in the market. Additionally, it can add functionality as is the case with the Lightning Network.
Discussing the concept, Tether's chief technology officer, Paolo Ardoino explained the benefits of the integration. Using the Lightning Network for small, low-cost transactions increases Tethers usability and transaction speed.
Tether is a First
Tether would be the first major asset launched on the Lightning Network. Not surprisingly, the Bitfinex/Tether camp is a big supporter of this upending technology. So much so, the firm joined RGB. RGB is a cooperation of firms seeking to put more assets onto the Lightning Network.
Bitfinex in The News
Bitfinex continues to see heavy media coverage regarding its current legal battle with the New York Attorney General, Letitia James. James claims to have evidence that proves Bitfinex and Tether conspired to cover up to $850 million in losses. In response, Bitfinex claims no wrongdoing. Also, this week the firm obtained a Stay of Demands from the NY Supreme Court.
A Stay of Demands halts the Attorney Generals full document requests in order to first establish if the company falls under NY jurisdiction. The company's lawyers argued that the firm has no offices in NY and hasn't harmed any of the state’s investors. Therefore, NY has no legal jurisdiction over the company. Now, Bitfinex only has to supply the required paperwork to support their argument.
A Smart Strategy
Despite these recent road bumps, Bitfinex continually finds new and innovative ways to issue USDT. This strategy increases the value of the token in terms of notoriety. It also locks Tether in with all the major players in the crypto market. The more blockchains the token can issue upon, the more users, promotions, and functions, Tether achieves.
Lightning Network Goes Mainstream
The Lightning Network continues to expand in all directions. This latest announcement is sure to drive further adoption. Additionally, Tether should see a boost in use as their transaction times and fees reduce when on the Lightning Network. Together, these projects are ready to shape the future cryptomarket.