Tether Lands on the Liquid Network

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The world’s leading stablecoin launches on Blockstream’s Liquid Network

Issuing stablecoins and various other digital assets under one blockchain platform makes a lot of sense and greatly improves industry efficiency whilst allowing traders to manage all their assets from a single wallet application.

The Liquid Network received a major boost to its ecosystem today with the launch of Tether (USDt) on Liquid. The Liquid sidechain represents a major upgrade over Tether’s original platform, the Omni Layer, offering faster settlements, Confidential Transactions, and sophisticated multisig security. In addition to the launch, Liquid USDt is now available for deposit and withdrawal at Bitfinex, with more venues opening soon.

Since launching in 2014, Tether has become by far the largest stablecoin in the industry and is relied on by traders globally to improve the efficiency of their trading activities. At the time of writing, Tether has achieved over four billion dollars in market cap and represents a whopping 20 billion dollars in daily trading volume.

“It has been a natural decision to deploy Tether on the Liquid Network given the fantastic work that the Blockstream team is achieving,” said Paolo Ardoino, Chief Technology Officer at Tether. “Issuing stablecoins and various other digital assets under one blockchain platform makes a lot of sense and greatly improves industry efficiency whilst allowing traders to manage all their assets from a single wallet application.”

In addition to Bitfinex, a number of other Liquid members are working on enabling Liquid USDt, including BTSE, BTCTrader/BtcTurk, OKEx, OKCoin, RenrenBit, and Sideshift AI. Liquid USDt can be easily added to existing Liquid Bitcoin (L-BTC) integrations, and even more support for Tether on Liquid is expected later in the year.

“The addition of Tether is a major milestone in increasing the utility of the Liquid Network," said Samson Mow, CSO at Blockstream. "In combination with the latest developments in the Liquid ecosystem, traders can now achieve some really cool things, such as OTC atomic swaps, super-fast arbitrage between exchanges, and easy Tether custody with Blockstream Green."

The launch of Tether on Liquid opens up some new and exciting possibilities that leverage the latest developments across the Liquid ecosystem:

  • Trust-minimized swaps: Traders engaging in OTC trades will be able to use the Liquid Swap Tool to perform atomic swaps between L-BTC and Liquid USDt, significantly reducing their counterparty risk when trading.
  • More efficient arbitrage: Once Liquid USDt is opened for deposits on more exchanges, arbitrage traders will be able to take advantage of Liquid’s 1-minute block times to rapidly complete inter-exchange transfers of fiat.
  • Self-custody with Blockstream Green: Taking custody of your Liquid USDt couldn’t be easier thanks to the Issued Asset support recently launched on Blockstream Green. Traders can keep their USDt on their own Liquid wallet during downtime, and just move funds to an exchange when actively trading. Additional Trezor support for assets is coming soon.
  • Enhanced securities trading: With the launch of the Liquid Securities platform on the horizon, Liquid USDt will provide a more familiar asset for traditional traders to trade their securities against.
  • Instant, low-cost stablecoin payments: Following the launch of Lightning support for L-BTC, Lightning support for other Liquid assets, such as USDt, is right around the corner, making instant, low-cost stablecoin payments possible for the first time.

Users can head to Bitfinex to purchase Liquid USDt, and a guide for completing a Bitcoin-Tether atomic swap is available in Blockstream’s official documentation.

Exchanges that already support Tether and are interested in adding Liquid USDt for their customers should contact the Blockstream team for integration support.

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Neil Woodfine
Blockstream
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