Lightning Labs Paving the Way to Bring Stablecoins to Bitcoin
Lightning Labs CEO Elizabeth Stark believes the new functionality brought by the Lightning Network Taproot Assets protocol will enable stablecoins on Bitcoin.
During FT Live’s Crypto and Digital Assets summit in London, Stark gave an explainer of Bitcoin and the Lightning Network to an audience of traditional finance players. Lightning Labs’ Taproot Assets protocol is building functionality for issuing assets on Bitcoin that can be transferred over the Lightning Network for instant, high-volume, low-fee transactions.
This builds upon the foundation laid by the 2021 Lightning network Taproot upgrade which expanded Bitcoin’s smart contract and scripting capabilities.
This would facilitate the use of stablecoins on the Bitcoin network, and allow them to take advantage of the functionality that the Taproot Asset protocol offers. According to Stark, developers have made significant headway toward this goal, culminating in the testing of transactions on Lightning:
“We released an early part of the code in October and recently demoed the first-ever transaction on Lightning of an asset. The idea is to have crypto dollars and stablecoins on the Bitcoin blockchain.”
excited to announce that I’ve just made the first mainnet *asset* keysend payment w/ Taproot Asset channels! ⚡️
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