KEY TAKEAWAYS
- Tether invests in Speed1, Inc., leading an $8 million funding round to enhance Bitcoin-aligned financial infrastructure.
- Speed leverages the Bitcoin Lightning Network and stablecoins to process over $1.5 billion in annual payments.
- The investment aims to expand USDT’s utility in real-world payment environments, reducing payment friction globally.
On December 16, 2025, Tether, a leading entity in the digital assets industry, announced a strategic investment in Speed1, Inc. (“Speed”), a payments infrastructure company. This investment, part of an $8 million funding round, was led by Tether alongside ego death capital. Speed is known for its innovative use of the Bitcoin Lightning Network and stablecoins to build instant, global settlement rails.
Speed processes over $1.5 billion in annual payment volume, serving a diverse clientele that includes consumers, creators, platforms, and enterprise merchants. Its products, Speed Wallet and Speed Merchant, cater to 1.2 million users and businesses, offering features such as instant payments, native BTC and USDT settlement, and high-reliability global routing for enterprise integrations.
Tether’s Strategic Vision for Bitcoin-Aligned Financial Infrastructure
Tether’s investment aligns with its broader strategy to bolster Bitcoin-aligned financial infrastructure and expand the utility of USDT in real-world payment environments. Speed’s architecture exemplifies how the Lightning Network and stablecoins can work together to facilitate high-scale money movement with low fees, robust compliance, and global reach.
Paolo Ardoino, CEO of Tether, highlighted the significance of Speed’s achievements, stating, “Speed is showing what Lightning can achieve when paired with a stable, liquid digital dollar like USDT.” He emphasized Tether’s support for teams developing practical infrastructure that reduces payment friction and expands access to reliable settlement rails.
Speed’s Integration of Lightning Network and Stablecoin Settlement
Speed’s integration with the Lightning Network, combined with stablecoin settlement capabilities, addresses the need for price stability among users and merchants. This combination reduces friction in cross-border transactions, creator payouts, merchant payments, and platform-level settlements.
Niraj Patel, CEO of Speed1, Inc., remarked on the transformative potential of their infrastructure, stating, “Crypto has lived in the world of speculation for too long. Speed is making it usable – instantly, globally, and at scale.” He noted that the Lightning Network provides speed, while stablecoins offer universal access, bringing these elements together for consumers, creators, and merchants.
For more details, the official announcement can be found here.
Why This Matters: Impact, Industry Trends & Expert Insights
Tether has announced an $8 million strategic investment in Speed1, Inc., aimed at enhancing Lightning Network payments and expanding the utility of USDT in real-world applications. This move is part of Tether’s broader strategy to integrate stablecoins with the Bitcoin Lightning Network to facilitate seamless global payments.
Recent industry reports indicate that the Bitcoin Lightning Network is experiencing maturation through efficient channels and growing enterprise use, with integrations by major platforms like Coinbase and Binance. This aligns with Tether’s investment in Speed, as it leverages the Lightning Network to enhance payment solutions.
As per insights from Elizabeth Stark, CEO of Lightning Labs, Tether’s USDt rollout via Taproot Assets enables stablecoin payments that decouple usage from BTC-locked capacity, combining Bitcoin’s security with Lightning’s speed. This supports Tether’s strategy to reduce payment friction and expand access to reliable settlement rails.
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