News
Lightning Labs Conducts Successful Tests Activating Stablecoins on the Bitcoin Blockchain
Lightning Labs Conducts Successful Tests Activating Stablecoins on the Bitcoin Blockchain
Lightning Labs, the developer behind BitcoinLightning Network, has successfully tested a protocol aimed at enabling the issuance of stablecoins on the Bitcoin blockchain. While speaking at the Financial Times Crypto and Digital Assets Summit, Elizabeth Stark, CEO of Lightning Labs, announced that the developer recently executed a test transaction on the Lightning Network using an asset created with the Taproot Assets protocol .
Stark highlighted the goal of having “crypto dollars and stablecoins” on the Bitcoin blockchain, saying it would solve real-world problems and attract more users to the digital asset space. She expressed a strong focus on solving practical problems rather than promoting memecoins or gaming-related businesses.
The Lightning Labs CEO also highlighted a surge in developer interest in Bitcoin following its halving event. She cited examples of builders working on decentralized finance (DeFi) projects and initiatives like bitVM, which enables the creation of Turing-complete Bitcoin contracts. Stark highlighted the global transferability of Lightning Labs’ technology, aiming to eliminate the concept of cross-border payments. She questions the need to call transactions “cross-border” when we don’t use such terminology for other internet-based activities like email or texting.
Referencing a recent International Monetary Fund (IMF) report, Stark noted that Bitcoin has become a crucial channel for remittances and evading capital controls in emerging markets. This finding is consistent with the experiences of developers and communities working in regions affected by hyperinflation and authoritarian regimes. In such circumstances, Bitcoin serves as an asset and medium of transaction when traditional alternatives are limited.