Stablecoin shake-up: USDT expands to Bitcoin, USDC to Aptos

January 31, 2025
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Stablecoin shake-up: USDT expands to Bitcoin, USDC to Aptos

Stablecoins are making waves across the crypto industry, and this week, two major players—Tether and Circle—are changing the game. Tether’s USDt is heading to Bitcoin’s Lightning Network, and Circle’s USDC is now natively available on Aptos, signaling a major shift in how stablecoins function across blockchain ecosystems.

These announcements hint at a bigger picture: stablecoins are no longer just Ethereum’s domain. Instead, they’re finding new homes on networks built for speed, efficiency, and real-world utility.

Tether Brings USDt to Bitcoin’s Lightning Network

For years, Bitcoin has been a fortress of security and decentralization, but not exactly the most efficient network for transactions. Enter Tether, which is integrating USDT directly into Bitcoin’s base layer and its Lightning Network.

This means that the world’s largest stablecoin—already used by millions for remittances, payments, and trading—will soon operate natively on Bitcoin, powered by Taproot Assets, a protocol developed by Lightning Labs.

Bitcoin has long been criticized for being slow and expensive for everyday transactions. The Lightning Network, a Layer 2 scaling solution, fixes that by enabling instant, low-cost payments—and now, USDT will be part of it.

"Tether is committed to driving innovation in the Bitcoin ecosystem," said Paolo Ardoino, CEO of Tether. "By enabling USDt on the Lightning Network, we are reinforcing Bitcoin’s foundational principles of decentralization and security while creating practical solutions for remittances, payments, and other financial applications."

Circle’s USDC Goes Native on Aptos

While Tether is making Bitcoin a home for stablecoins, Circle is making sure USDC finds a home on Aptos.

The Aptos blockchain, a Move-based Layer 1 network, has been gaining traction, especially in DeFi, payments, and gaming. Until now, USDC on Aptos was only available in a bridged form, meaning users had to transfer it from Ethereum via LayerZero’s AptosBridge. The problem? Bridged assets aren’t natively issued by Circle and lack full 1:1 redeemability with Circle Mint.

With native USDC on Aptos, developers and users can access a fully regulated, Circle-issued stablecoin, directly backed and redeemable without relying on a third-party bridge.

For one, bridged stablecoins can be risky. They rely on third-party protocols, which means security vulnerabilities and compatibility issues. With native USDC, users get better liquidity, faster transactions, and full Circle-backed stability.

Aptos’ DeFi ecosystem grew 10x in 2024, and with over 200 applications already on the network, USDC’s arrival could supercharge adoption. According to Circle, the Aptos team and bridge providers will work with users to migrate from lzUSDC to native USDC over time.

What’s Really Happening Here?

Both announcements signal a stablecoin evolution. Once dominated by Ethereum and its Layer 2s, stablecoins are expanding to new blockchain ecosystems that offer faster, cheaper, and more scalable solutions.

Stablecoins are arguably the most-used digital assets in the world, and their infrastructure is evolving fast. With Tether embedding USDt into Bitcoin and Circle making USDC native on Aptos, the stablecoin ecosystem is becoming more decentralized and efficient than ever.

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