Challenging Stablecoin Platforms: Speed Wallet introduces USDT on Lightning to compete against Ethereum, TRON and SOLANA

What is USDT?

Tether (USDT) is a leading stablecoin pegged 1:1 to the US dollar. Issued by Tether Limited, it maintains value stability through dollar reserves. USDT dominates over 70% of the stablecoin market, with daily volumes often exceeding $85 billion and a $115 billion market cap. Its global trust and widespread adoption make it a priority for Speed Wallet, offering users a reliable asset for efficient transactions.

Why is Lightning Network Better for USDT Transactions?

The Lightning Network offers significant advantages for USDT transactions compared to public blockchains like Ethereum, Tron, Solana, TON, and Tezos. Currently, Ethereum, Tron, and Solana account for 90% of global USDT transactions. However, the landscape could change significantly with the following benefits of the Lightning Network over these other networks.

1. Lower Fees and Higher Speed, Reliability and Privacy

• Predictability and the magnitude of transaction fees are critical factors, especially for micropayments in the digital payment world. The Lightning Network offers high speed and remarkably low, stable fees. Below, we have compared the transaction speed, fees, and traffic impact for USDT transactions across different networks.

• Higher Reliability: The Lightning Network’s decentralized architecture offers superior uptime and reliability for USDT compared to networks like Solana, which has experienced frequent outages, and Ethereum and Tron, which can suffer from network congestion affecting transaction speed and reliability.

•  Improved Privacy:

• • • Off-chain Transactions: Most transactions occur off the main blockchain, reducing public visibility.
    • Routing Obfuscation: Payments are routed through multiple channels, obscuring transaction origins and destinations.
    • Limited Information Disclosure: Nodes only see adjacent hops, not the full payment route or transaction details.

• Comparison of Lightning with other networks supporting USDT:

Network	Transaction Fee	Congestion	Transaction Finality	Reliability	Privacy
Lightning	0.05% of transaction fee	Fees remain stable regardless of network traffic	Instant (Less than few seconds)	100% Uptime	High (Off-Chain Transactions)
Ethereum	$0.5 to $7 USD per transaction	Fees highly variable based on network congestion	~15 minutes	Occasional network congestion	Moderate (Public Blockchain)
Tron	$1.5 to $3.5	Fees fluctuates with network usage	~57 seconds	Some downtime reported	Moderate (Public Blockchain)
Solana	$0.01 to $0.2 per transaction	Relatively Stable	~30 seconds.	Multiple Outages reported	Moderate (Public Blockchain)

 

2. Global Adoption / User Base

The Lightning Network is one of the fastest-growing networks, increasingly adopted worldwide with notable use cases in remittances and micropayments. It boasts significant penetration in payment networks, as evidenced by the following statistics:

• Nodes: 15,300 ; Channels: 51,000 ; Network Capacity: $300M

• Monthly Active Users: Over 1 million

• Global Businesses Accepting Lightning Payments: 100,000+

• Lightning Wallet Downloads and Users: 50 Million+ (includes CashApp, Speed, Wallet of Satoshi, Strike, Muun and many others)

Exchanges Supporting Lightning: Coinbase, Binance, Bitfinex, Kraken, OkCoin, etc.

3. Scalability

The Lightning Network does not have any upper limit for transactions per second, making it highly scalable for both micro and large USDT transactions.

4. Security

The Lightning Network benefits from Bitcoin’s robust security model, operating on top of the Bitcoin blockchain, thus ensuring a secure environment for USDT transactions.

How can users acquire USDTL on Speed?

To experience USDTL on the Lightning Network, new users can download or access the Speed wallet on iOS, Android, and Chrome. Businesses can sign up at www.tryspeed.com to start accepting USDTL as soon as it’s available.

Methods to Acquire USDTL:

• Ethereum Bridge: Convert Ethereum USDT to USDTL through the Speed Wallet. Download the app, register, and transfer Eth-USDT to Speed Wallet for automatic conversion to USDTL.
• BTC Lightning Payments: Generate USDTL invoices to accept BTC Lightning payments. Speed Wallet will automatically convert BTC to USDTL.
• Swap on Speed Wallet: Soon, users will be able to swap between BTC and USDTL within the wallet.
• USDTL Payments: Receive USDTL from other Speed users, businesses, or wallets adopting USDTL

What are the use cases of USDTL on Speed?

By connecting the Lightning Network with the USDT stablecoin, Speed offers users increased freedom, flexibility, and a seamless transaction experience through the following:

• Store USDTL: Easily convert BTC into USDTL to achieve price stability
• Transact in USDTL: Send/Receive USDTL on the Lightning Network
• Interoperability between USDTL & BTC: Send USDTL and receive Bitcoin on the Lightning Network, or vice versa, with instant settlement and low transaction costs. This also applies to Eth-USDT and USDTL.
• Real-time Swap: Seamlessly convert between BTC and USDTL, and Eth-USDT and USDTL, within the Speed Wallet.

Business Acceptance: Businesses can accept global payments in USDTL and store them as BTC on Lightning, USDTL, or USDT on Ethereum, eliminating transaction costs, volatility, and delays.

Is USDTL fully reserved?

• To ensure the security and transparency, USDTL will be 100% reserved against USDT on Ethereum. All reserve assets will be held in a multisig wallet. Multisig requires multiple keys to authorize a transaction, significantly reducing the risk of unauthorized access. 
• Speed has adopted a strict no-hypothecation policy for USDTL. Speed reserves backing the stablecoin will not be lent out or used for other purposes. 
• Speed will also ensure daily publication of proof of reserve and monthly publication of a third party audit report

How will USDTL adoption increase?

At Speed our mission is to make Bitcoin accessible to everyone and create a payment ecosystem which supports financial inclusion and freedom. Successful adoption of USDTL will require more users, wallets and businesses to accept and transact in USDTL. 

Speed team is committed to this mission and is exploring partnerships with leading payment processors, wallets and businesses to make USDTL payments accessible for everyone. By leveraging Speed’s APIs, the aim is to bring the rapid, cost-effective, and versatile advantages of USDTL transactions to a broader range of platforms.

Conclusion

The launch of USDTL by Speed marks a significant milestone in the evolution of digital payments. By combining the stability of USDT with the efficiency of the Lightning Network, Speed offers a cutting-edge solution that addresses the needs of modern businesses and individuals.