Bitfinex to Launch Stablecoin Tether (USDT) on Lightning Network This Year After Coming to EOS
- After Omni, Ethereum, and Tron, Tether is coming on EOS blockchain
- Bitfenix collaborating with Blockstream to launch Tether on Liquid to bring assets on the Lightning Network
- Not “directly on Bitcoin” rather a separate layer for proof transmission
With new entrants keep on coming in the market, the fight among stablecoins is also rising up. This has the popular and controversial Tether slowly losing its market share to competitors.
— Mati Greenspan (@MatiGreenspan) May 31, 2019
In late April, we also got to know that Tether stablecoin is not 100 percent backed by USD and Bitfinex exchange that has overlapping management and ownership with Tether used USDT funds to cover its $850 million losses. Then in May, it has been revealed that Tether used some of its reserves to make investments in Bitcoin among other “assets.”
However, Tether is now working on making its way back to its glory days.
Per the latest reports, Bitfinex is planning to bring USDT to more blockchains. Tether has already been issued on the Omni Layer, Ethereum and then recently (in April) on Tron. Now, it has been reported, USDT is coming on EOS blockchain.
The idea behind this is to supplement eosfinex, a decentralized crypto asset exchange build on top of EOS protocol. Like other DEXs, it is difficult to process crypto-to-fiat pairs on eosfinex as well.
EOS has a lot of things working in its favor as recently, Coinbase announced the fifth largest cryptocurrency is available on Coinbase.com and its Android and iOS apps. Additionally, with June 1st here, a huge announcement, that is speculated to be a crypto Twitter, is coming its way.
Tether (USDT) Coming on Lightning Network
Bitfinex CTO Paolo Ardoino said that the Bitfenix team is collaborating with Blockstream to launch Tether on Liquid to bring assets on the Lightning Network. The intent here is to launch Tether on the Lightning Network by the end of this year.
Working on that too, almost there!
— Paolo Ardoino (@paoloardoino) May 31, 2019
As part of its efforts, Bitfenix has joined companies and a group of developers called RGB to put more asset onto the Lightning Network which is a second layer solution to enable cheaper and quicker Bitcoin transactions.
Of course it's not "directly on Bitcoin". Any asset protocol would be using it somehow "indirectly". In this case, unlike w/ Counterparty or Omni, there's a separate layer for proof transmission ("client-side validated" approach by @peterktodd, particularly suitable for assets).
— Giacomo Zucco [do I identify as Koshchei's duck?] (@giacomozucco) May 31, 2019
With this Tether would become the first stablecoin to be issued on the Lightning Network as its competitors TrueUSD, Gemini dollar, USD Coin, and PAX all are exclusively issued on Ethereum blockchain.
Looks like Bitfinex just raised $1 billion https://t.co/aZyqEcvs7K
— Barry Silbert (@barrysilbert) May 13, 2019
Despite taking a beating after the NYAG fiasco, Tether has been hitting a new high above $3.1 billion in market capitalization over the last month. But it could be attributed to the monster rally Bitcoin and the crypto market saw that has other stablecoins like USDC and PAX seeing an increase in its market cap during the same period as well.