Tether Backs Lightning Payments Push With $8M Bet on Bitcoin Startup Speed

Stablecoin issuer Tether has led an $8 million funding round in Bitcoin payments startup Speed under its push to expand stablecoin use on Bitcoin based infrastructure. The investment is aimed at supporting enterprise grade payments using stablecoins on the Lightning Network, a layer 2 system built on top of Bitcoin.

In a statement released Tuesday, Tether said Speed’s technology shows how Lightning and stablecoins can work together to move money quickly and at scale, while keeping fees low and meeting compliance needs. Tether chief executive Paolo Ardoino said the company sees growing signs that Bitcoin centered networks are becoming suitable for everyday commercial use.

Bitcoin focused venture firm Ego Death Capital also participated in the funding round, signaling broader investor interest in payment tools built directly on Bitcoin rather than alternative blockchains.

Lightning Network Meets Stablecoin Demand

Speed operates a suite of products, including Speed Wallet and Speed Merchant, which are used by more than 1.2 million consumers, creators, platforms, and businesses. The company currently processes over $1.5 billion in payment volume each year, according to figures shared by Tether.

The startup is focused on making stablecoin payments practical for merchants and large platforms by using the Lightning Network for faster settlement. Lightning allows transactions to occur off Bitcoin’s main chain, reducing congestion and lowering costs, before final settlement occurs later.

For Tether, the investment fits into a broader strategy centered on expanding the real world use of USDT, the largest stablecoin by market value. Ardoino said the company is focused on backing teams that build payment systems which reduce friction and improve access to reliable settlement methods, especially in regions where traditional banking remains limited.

Profits Fuel Expanding Investment Portfolio

The Speed investment adds to a long list of companies backed by Tether, which now exceeds 140. In recent years, the firm has expanded beyond stablecoins into areas such as Bitcoin mining, artificial intelligence, energy projects, financial services, and even professional football teams.

Much of this activity has been funded by strong profits generated from interest on US Treasury bills that back USDT. With a market cap of about $186.3 billion, USDT remains the most widely used stablecoin globally.

Tether reported profits of more than $10 billion across the first three quarters of 2025, following $13.4 billion in profit in 2024. It is among the most profitable firms in the world on a per employee basis.