Tether Invests $8M in Speed to Scale Lightning-Based Stablecoin Payments

Tether has made an $8 million investment in Speed1, Inc., a firm focused on building a payment infrastructure using the Bitcoin Lightning Network alongside stablecoins. This investment aims to enhance real-world payment applications for Tether’s USDT while strengthening Bitcoin-related financial systems.

Key Takeaways

Tether invests $8 million in Speed1, Inc. to enhance stablecoin payments using the Bitcoin Lightning Network.
The funding round included contributions from Ego Death Capital, supporting Tether's goal to expand USDT's real-world payment use.
Speed processes over $1.5 billion annually and serves around 1.2 million users with its Speed Wallet and Speed Merchant products.
The integration of Lightning and stablecoins allows businesses to choose between volatility exposure and price-stable payments.
Tether's investment underscores its commitment to developing Bitcoin-aligned financial infrastructure to facilitate everyday transactions.

Tether

Growing Payment Volume and User Base

Speed processes an impressive $1.5 billion in payment volume annually, serving various groups including consumers, creators, platforms, and enterprise merchants. Its main products, Speed Wallet and Speed Merchant, cater to about 1.2 million users and businesses. The platform ensures instant payments, facilitates Bitcoin and USDT transactions, and offers global routing that meets the reliability needs of enterprises.

Speed aims to be a connector between Bitcoin networks and everyday payment requirements, particularly for cross-border payments, payouts for creators, and merchant settlements. By integrating stablecoins with Lightning, Speed allows users and businesses to select between dealing with volatility or opting for stable payment solutions, based on their preferences.

Tether Deepens Focus on Bitcoin-Aligned Infrastructure

This investment aligns with Tether's strategy to bolster Bitcoin-related financial systems and broaden the utility of USDT beyond speculative trading into daily use cases. The company notes that Speed's infrastructure effectively demonstrates how Lightning and stablecoins can function together at scale, featuring low transaction fees, global accessibility, and a compliance-oriented design.

Tether's CEO, Paolo Ardoino, remarked, “Speed is showing what Lightning can achieve when paired with a stable, liquid digital dollar like USDT.” He emphasized Tether's dedication to supporting systems that minimize payment friction and widen access to dependable settlement mechanisms, particularly in mainstream commerce.

Bridging Speculation and Real-World Use

Speed's management emphasizes that the platform aims to transform crypto from speculative investments into functional, worldwide payment systems. According to CEO Niraj Patel, while Lightning provides rapid transaction capabilities, stablecoins offer universal access and predictable value, enabling the infrastructure to effectively serve consumers, creators, and merchants at scale.

Speed’s seamless integration with the Lightning Network allows for stablecoin settlements, providing users with price stability when needed. This hybrid model reduces friction across various payment scenarios, including international transfers, platform settlements, and merchant transactions, especially in areas where traditional banking is expensive or inefficient.

As stablecoins and Bitcoin networks gain traction in payment systems, Tether's investment highlights a growing interest from significant digital asset firms in creating infrastructure that supports genuine financial activities rather than just trading or speculation. Recently, Visa also announced its intention to allow stablecoin-based settlements throughout its U.S. payment network, expanding its range of crypto-related offerings.