Bitfinex to Launch Tether on Lightning Network by the end of this year
Bitfinex, one of the most advanced and largest crypto exchange has recently announced that it will launch Tether dollars (USDT) stable coin on Lightning network. Stablecoin is currently in trend and Bitfinex wants no stone unturned in order to bring USDT to more blockchains. Previously, the company announced that it will launch its stable coin on EOS’s blockchain. Currently, Tether is issued on the Omni Layer, Ethereum, and TRON. Along with launching USDT on Lightning Network, the company is also planning to launch it on Blockstream’s federated sidechain Liquid. The launch will take place later this year and it is “one of the coolest things” the firm has ever done, Bitfinex CTO Paolo Ardoino said in a May 31 report by The Block.
The Lightning Network is a layer-two micropayments protocol that enables instant, low-cost Bitcoin transactions.
The firm told the Block that it is dedicated to bringing the stable coin to other possible blockchain and launching USDT on the lightning network is part of the efforts. In order to achieve the goal, the company has also tied up with a group of developers and companies called RGB, which has plenty of experience working and putting assets on Lightning Network. It describes itself as “a completely free, open-source, non-profit and community-oriented effort, promoted by the BHB Network and aimed at the development of standards and best practices to issue, transmit and store ‘Bitcoin-based non-bitcoin assets.’”
“I think that is one of the coolest things we could ever being involved with,” Ardoino said in an email to The Block.
“We really love LN (I personally do a lot) so we want to make sure we learn and contribute to it with our resources,” he added.
According to the Block, the company has planned it a long ago according to a company update dated September 2017. Deploying Tether on Lightning network can possibly improve the transaction speed and decrease the transaction cost, Bitfinex said.
“We are excited to announce the initial discovery and integration discussion with the Lightning Network team for low-cost, instant transactions of Tether currencies on the Lightning Network,” according to the update.
Tether would be one of the largest digital currency ever to be operational on Lightning network which will boost the two-layer protocol adoption. Main competitors of Tether are USD Coin, TrueUSD, PAX, Gemini dollar which are all issued exclusively on Ethereum.