Lightning Labs, one of the main companies working on Bitcoin’s layer-2 Lightning Network, released “Taproot Assets” on mainnet Wednesday, allowing for the issuance of stablecoins and other financial assets on the Bitcoin blockchain. This new set of developer tools will allow for Bitcoin to become a multi-asset network, taking the protocol to the next financial level. It is expected that this will benefit people in emerging markets due to their demand for digital dollars. Lightning’s instant settlement, global reach, and low fees along with Bitcoin’s security and decentralization is expected to be a game changer for the network, absorbing vast amounts of liquidity and transactional throughput. Over 2000 financial assets have already been minted in the testing phase of Taproot Assets, highlighting that tokenization is taking place in a substantial fashion. Jesse Shrader, CEO of Lightning-centric data analytics firm, Amboss, has suggested that Bitcoin and the Lightning Network are poised to fill the gap of unsustainable debt levels in traditional financial systems. Taproot Assets has been cheered on by prominent members of the crypto community, with Tether’s recently appointed CEO Paolo Ardoino calling it “the future we deserve.” This release marks a new era of multi-asset Bitcoin.
This news is good for the crypto community as it allows for the issuance of stablecoins and other financial assets on the Bitcoin blockchain, allowing for the protocol to become a multi-asset network. This will benefit people in emerging markets due to their demand for digital dollars, and it is hoped that Bitcoin and the Lightning Network will fill the gap of unsustainable debt levels in traditional financial systems.
You can read more about this topic here: Decrypt: Stablecoins on Bitcoin? Lightning Labs Aims to ‘Bitcoinize the Dollar’