Tether Heads $8M Funding for Speed to Boost Lightning Stablecoin Payments

Core Insights - Tether has made an $8 million strategic investment in Speed1, Inc. to enhance Lightning-native, stablecoin-powered payments for global commerce, indicating a strong commitment to Bitcoin-aligned payment infrastructure [1][2] - The investment aims to support the growing adoption of USDT on the Bitcoin Lightning network, which is expected to facilitate instant and low-fee settlements for various users [3][5] Investment Details - Tether co-led the funding round for Speed, which focuses on payment solutions utilizing the Bitcoin Lightning Network and stablecoins, targeting a diverse range of users including consumers, creators, platforms, and enterprise merchants [2][3] - Speed processes over $1.5 billion in annual payment volume and serves approximately 1.2 million users and businesses, showcasing its significant market presence [3] Strategic Goals - Tether views the Speed investment as part of a broader strategy to bolster Bitcoin-based financial infrastructure and expand the role of USDT in real-world payment scenarios [3][4] - CEO Paolo Ardoino emphasized that the combination of Lightning technology and stablecoins like USDT can streamline transactions and prepare Bitcoin networks for mainstream commercial use [4] Market Trends - The activity of stablecoins on the Lightning Network has increased since Tether's announcement to integrate USDT with Bitcoin's base layer and Lightning, which is expected to lower costs and settlement times for various payment types [5] - Consumer applications, such as Block's Cash App, are beginning to adopt Lightning and stablecoins, indicating a growing trend towards integrating these technologies into everyday financial transactions [6] Recent Initiatives - Tether's investment in Speed is part of a series of strategic moves to expand USDT's payment capabilities, including investments in Zengo wallet and Fizen, aimed at enhancing stablecoin access and self-custody tools [7] - In November 2025, Tether also invested in Ledn, a Bitcoin-backed lender, to broaden credit products while maintaining customer self-custody, further supporting the use of USDT and BTC as collateral [8]