Tether Backs Lightning Network Stablecoin Payments With $8M Investment in Speed

Tether Invests $8M to Expand Stablecoin Payments on Bitcoin Lightning

Stablecoin issuer Tether has led an $8 million funding round in Speed, a Bitcoin-focused payments startup building stablecoin infrastructure on the Lightning Network. The investment underscores Tether’s growing push to expand real-world payment use cases for USDT beyond traditional blockchains.

The round was co-led by Ego Death Capital, a venture firm specializing in Bitcoin-native companies.

According to Tether, Speed’s platform demonstrates how stablecoins and Lightning can coexist to deliver fast, low-cost, and scalable payments suitable for global commerce.

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Speed Brings USDT Payments to the Lightning Network

Speed leverages Bitcoin’s Lightning Network, a layer-2 scaling solution, to facilitate near-instant USDT transfers with minimal fees. The company offers both Speed Wallet and Speed Merchant products, targeting consumers, creators, and enterprise merchants.

The startup reports:

• 1.2 million+ users

• $1.5 billion in annual payment volume

• Active adoption across creator platforms and online merchants

Tether CEO Paolo Ardoino said Speed’s traction shows that Bitcoin-based payment rails are now ready for mainstream usage.

“Speed’s execution and adoption signal that Bitcoin-rooted networks are ready for mainstream commerce,” Ardoino said.

Why Lightning Matters for Stablecoins

While USDT is traditionally associated with Ethereum and Tron, Lightning offers a different value proposition:

• Instant settlement

• Extremely low transaction costs

• Bitcoin-native security

• Improved scalability for microtransactions and global payments

By backing Speed, Tether is positioning USDT as a neutral settlement layer that can operate across multiple blockchain environments, including Bitcoin.

Speed also confirmed the funding on X, stating that the capital will accelerate merchant integrations and enterprise adoption.

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Tether Continues Aggressive Expansion Beyond Stablecoin

The Speed investment adds to a growing list of ventures backed by Tether. The company now supports more than 140 businesses across sectors including:

• Bitcoin mining

• Artificial intelligence

• Energy infrastructure

• Financial services

• Professional sports

Much of this expansion has been fueled by Tether’s outsized profitability. The company generated over $10 billion in profit in the first three quarters of 2025, following $13.4 billion in profit in 2024, largely driven by interest earned on US Treasury bills backing USDT.

USDT remains the world’s largest stablecoin, with a market capitalization exceeding $186 billion.

What This Means for Bitcoin Payments

Tether’s backing of Speed highlights a broader shift toward Bitcoin-native financial infrastructure that doesn’t rely solely on smart contract platforms. If Lightning-based stablecoin payments continue to scale, they could play a significant role in:

• Cross-border remittances

• Merchant settlement

• Creator monetization

• Enterprise payments

By combining Bitcoin’s security with stablecoin liquidity, Lightning-enabled USDT payments may help close the gap between crypto infrastructure and real-world commerce.

See all our insights: Bitcoin World News