• Tether leads $8 million round for Speed, focusing on Bitcoin layer-2 solutions for stablecoins.

• Ego Death Capital also participates, backing Speed’s wallet and merchant tools for global payments.

• Speed handles $1.5 billion in yearly transactions, demonstrating readiness for mainstream commerce with 1.2 million active users.

Tether invests $8M in Speed to boost USDT on Lightning Network, enabling fast enterprise payments. Discover how this expands Bitcoin’s utility in stablecoin transfers today.

What is Tether’s Investment in Speed Bitcoin Startup?

Tether’s investment in Speed Bitcoin startup involves an $8 million funding round led by the stablecoin issuer to advance enterprise-level stablecoin payments on the Bitcoin Lightning Network. Speed leverages this layer-2 solution to enable swift USDT transfers with low fees and strong compliance features. This move underscores Tether’s commitment to integrating stablecoins into Bitcoin’s ecosystem for broader global accessibility.

How Does Speed Utilize the Lightning Network for Stablecoin Payments?

Speed’s platform integrates the Bitcoin Lightning Network to facilitate seamless USDT transfers, allowing for high-volume, low-cost transactions that bypass traditional blockchain limitations. According to Tether’s statement, Speed’s architecture enables money movement at scale with global reach and robust compliance measures. This is particularly vital for enterprises seeking efficient payment rails.

The startup’s Speed Wallet and Speed Merchant products serve over 1.2 million consumers, creators, platforms, and merchants, processing more than $1.5 billion in annual payment volume. Paolo Ardoino, Tether’s CEO, emphasized that Speed’s execution signals Bitcoin-rooted networks are primed for mainstream commerce. He stated, “We back teams building practical infrastructure that reduces friction in payments and increases access to reliable settlement rails.”

By focusing on the Lightning Network, Speed addresses key pain points in cryptocurrency payments, such as speed and cost, making it a compelling option for businesses worldwide. Data from the platform shows consistent growth in adoption, highlighting its potential to transform digital transactions.

Source: Tether

The investment also aligns with Tether’s broader strategy to enhance the utility of USDT, the world’s largest stablecoin with a market capitalization exceeding $186.3 billion. This funding round, which includes contributions from Bitcoin ecosystem investor Ego Death Capital, positions Speed to expand its reach and innovate further in the payments space.

Source: Speed

Frequently Asked Questions

What is the purpose of Tether’s $8 million investment in Speed?

Tether’s $8 million investment in Speed aims to support the startup’s development of stablecoin payment solutions on the Bitcoin Lightning Network. The funding enables faster USDT transfers for enterprises, emphasizing low fees, compliance, and global scalability to drive mainstream adoption of Bitcoin-based payments.

How does Speed’s platform benefit from the Lightning Network?

Speed’s platform harnesses the Lightning Network to process USDT transactions quickly and affordably, handling over $1.5 billion in volume annually for 1.2 million users. This integration makes payments efficient and accessible, ideal for merchants and consumers seeking reliable digital settlement options in everyday commerce.

Key Takeaways

• Tether’s Strategic Funding: The $8 million investment highlights Tether’s focus on expanding USDT’s role in Bitcoin’s layer-2 ecosystem for enterprise use.
• Speed’s Growth Metrics: With 1.2 million users and $1.5 billion in annual volume, Speed demonstrates proven scalability and adoption in stablecoin payments.
• Broader Implications: This move reinforces Bitcoin’s potential as a foundation for global commerce, urging businesses to explore Lightning-enabled solutions for cost-effective transfers.

Conclusion

Tether’s investment in Speed Bitcoin startup marks a significant step in merging stablecoins with the Lightning Network, enhancing USDT payments for enterprises worldwide. As Tether continues to diversify its portfolio across sectors like Bitcoin mining, AI, energy, and finance—backing over 140 companies—this funding exemplifies its role in fostering innovative payment infrastructure. With record profits of over $10 billion in the first three quarters of 2025, following $13.4 billion in 2024, Tether remains a powerhouse in the crypto space, driven by interest from US Treasury bills backing USDT. Looking ahead, such initiatives promise to reduce payment frictions and broaden access to reliable digital rails, inviting businesses to integrate these technologies for future growth.

Tether Expands Influence Across Diverse Sectors

Tether has been actively diversifying its investments beyond core stablecoin operations, spreading its bets across more than 140 companies in various fields. This includes ventures in Bitcoin mining, artificial intelligence, renewable energy, traditional finance, and even sports like football teams. The investment in Speed is a prime example of Tether’s strategy to bolster Bitcoin-focused platforms that enhance the practical applications of USDT.

These investments are fueled by Tether’s substantial profits, primarily generated from interest on US Treasury bills that secure the USDT stablecoin. As the largest stablecoin by market cap at $186.3 billion, USDT’s backing provides a stable foundation for Tether’s expansive portfolio. Analysts note that this financial strength allows Tether to support emerging technologies without compromising its primary mission of maintaining peg stability.

In the context of the broader market, the Bitcoin-to-gold ratio has experienced a 50% decline in 2025, attributed to shifting investor sentiments toward digital assets amid economic uncertainties. Tether’s moves in supporting layer-2 solutions like Speed could help stabilize and grow Bitcoin’s utility, potentially influencing future ratios and adoption trends.

Tether’s Impressive Profit Trajectory

Tether continues to demonstrate extraordinary financial performance, reporting profits exceeding $10 billion across the first three quarters of 2025. This builds on the $13.4 billion achieved in 2024, positioning the company as one of the most profitable entities globally, especially when measured on a per-employee basis. Such earnings underscore Tether’s efficient operations and the lucrative nature of its stablecoin model.

The bulk of these profits stems from yields on US Treasury investments, which back USDT and ensure its dollar peg. With a workforce that remains relatively lean, Tether’s profitability per employee rivals that of top tech firms, highlighting its streamlined approach to crypto infrastructure. Experts from financial circles, such as those cited in industry reports, praise this model for its resilience in volatile markets.

Paolo Ardoino has repeatedly emphasized sustainable growth, stating in recent announcements that reinvesting profits into innovative projects like Speed strengthens the entire ecosystem. This philosophy not only bolsters Tether’s balance sheet but also contributes to the maturation of cryptocurrency payments, making them more viable for everyday and enterprise use. As Tether navigates regulatory landscapes and market dynamics, its focus on compliance and scalability remains a key differentiator.

Looking at Speed specifically, the startup’s integration of stablecoins on Lightning addresses longstanding challenges in crypto transactions, such as high fees and slow confirmations. By processing billions in volume, Speed provides empirical evidence of the technology’s readiness for scale. Tether’s involvement signals confidence in this direction, potentially encouraging other investors to follow suit.

Overall, this partnership between Tether and Speed exemplifies the evolving intersection of stablecoins and Bitcoin’s layer-2 innovations. It not only enhances payment efficiency but also paves the way for wider acceptance of digital assets in global commerce. Stakeholders in the crypto space should monitor how this investment unfolds, as it could set precedents for future stablecoin applications.