In a significant move to enhance its offerings, Tether has co-led an $8 million funding round for Speed, a startup harnessing the capabilities of the Bitcoin Lightning Network. This investment aims to facilitate mainstream adoption of stablecoin transactions, particularly USDT, for real-time payments.
Tether”s involvement was made public on Tuesday, marking another strategic step in its ongoing mission to bolster the utility of USDT on the Lightning Network. Alongside Ego Death Capital, Tether”s backing of Speed underscores its commitment to expanding the infrastructure necessary for efficient cryptocurrency transactions.
Currently, Speed is processing over $1.5 billion annually through its payment solutions, which include the Speed Wallet and Speed Merchant. With a user base of approximately 1.2 million, the platform allows for seamless transactions using both Bitcoin and USDT, catering to enterprise customers with robust global payment routing.
The integration of the Lightning Network is pivotal, enabling high-volume transactions with minimal fees while ensuring compliance and accessibility across borders. “Speed demonstrates the potential of the Lightning Network when paired with a stable and liquid digital dollar like USDT,” stated Tether CEO Paolo Ardoino. He added that the firm is keen on supporting initiatives that streamline payment processes and broaden access to reliable financial rails.
On a broader scale, this investment aligns with Tether”s strategy to fortify the financial infrastructure built on Bitcoin, especially at a time when Bitcoin has seen fluctuations in its market price, trading recently around $87,500. This represents a slight recovery from a dip near $85,000, although it remains down approximately 30% from its all-time high above $126,000 reached earlier in October.
Moreover, Tether”s financial muscle extends to significant holdings in Bitcoin, with nearly $9.9 billion worth of BTC as per its latest report. The company has also made headlines with various investments, including a prominent role in a recent $81 million funding round for a robotics company and a substantial stake in video platform Rumble.
In a further expansion of its portfolio, Tether attempted to acquire a majority stake in the renowned Italian soccer club Juventus for around $1.2 billion. However, this offer was reportedly rejected by the current ownership, resulting in a notable spike in the team”s stock price shortly thereafter.
This latest investment in Speed exemplifies Tether”s continuous efforts to innovate and solidify its position within the evolving landscape of cryptocurrency payments.
