Transfer Stablecoins on the Lightning Network
Bitcoin’s layer-2 chain, Lightning Network, will begin supporting stablecoin transfers in $USDC.X and $USDT.X – enabling greater multi-asset functionality on the Bitcoin network.
Bitcoin Taproot, an upgrade released in November 2021 which improved Bitcoin’s privacy and security, made stablecoin transactions possible and introduced smart contracts to the Bitcoin network. In effect, Lightning will help enable stablecoin transfers using Taro Protocol, which allows developers to move stablecoins from the Bitcoin network to the Lightning Network. They will not issue stablecoins, but will simply allow people to move money across the networks.