Tether is expanding USDT’s role beyond trading and into everyday payments.
The issuer of the world’s largest stablecoin has co-led an $8 million Series A funding round for Speed, a payments infrastructure company building instant settlement rails on the Bitcoin Lightning Network. The round was led alongside Bitcoin-focused venture firm ego death capital.
The investment marks a concrete step toward making USDT usable for fast, low-cost payments by combining stablecoin value with Bitcoin’s Lightning Network speed.
Building Stablecoins on Bitcoin Rails
Speed develops consumer and merchant payment infrastructure that allows businesses to accept Bitcoin via Lightning as well as stablecoins such as USDT, with near-instant settlement and minimal fees.
The company operates two core products (Speed Wallet and Speed Merchant) and reports more than $1.5 billion in annual transaction volume across 1.2 million users and businesses.
While USDT is natively issued on networks such as Tron and Ethereum, Speed’s architecture enables stablecoin value to move across Lightning-based rails, likely using emerging Bitcoin-native asset frameworks and swap mechanisms. The result is stable, dollar-denominated payments that inherit Lightning’s speed and cost advantages.
For merchants, this removes two of crypto’s biggest friction points: Bitcoin’s price volatility and Ethereum’s transaction costs.
Tether’s Infrastructure Play
The investment aligns with Tether’s broader strategy of funding financial infrastructure rather than speculative applications. In recent years, the company has expanded into Bitcoin mining, AI, education, and payment rails, positioning USDT as a functional digital dollar inside a parallel financial system.
“Speed is showing what Lightning can achieve when paired with a stable, liquid digital dollar like USDT,” said Tether CEO Paolo Ardoino. “Speed’s execution and adoption signal that Bitcoin-rooted networks are ready for mainstream commerce.”
Speed CEO Niraj Patel framed the partnership as a shift away from crypto’s speculative focus, emphasizing real-world usability for creators, platforms, and merchants operating across borders.
Why It Matters
This move reinforces a growing trend toward bringing stablecoins onto Bitcoin-native infrastructure. As protocols like Taproot Assets mature, Bitcoin is increasingly positioned as a settlement layer not just for BTC, but for dollar-denominated payments as well.
For Tether, backing Lightning-based infrastructure diversifies USDT’s distribution beyond Tron and Solana while anchoring it to Bitcoin’s security model. For the broader market, it signals that stablecoins are evolving from exchange liquidity tools into everyday payment instruments.
As regulatory clarity improves and institutions adopt blockchain-based settlement, investments like this suggest that the next phase of stablecoin adoption will be driven by infrastructure, not speculation.
