Bitcoin stablecoins are getting closer to reality
Stablecoins operating on Bitcoin are getting closer to becoming a reality thanks to a new protocol (Taproot Assets) created by Bitcoin layer 2 infrastructure developer, Lightning Labs.
Speaking at the Financial Times Crypto and Digital Asset Summit in London last week, Lightning Labs CEO Elizabeth Stark said they had recently executed test transactions on the Lightning Network with a created asset.
The test transactions come approximately six months after the developer first announced 'Taproot Assets'.
Stablecoins are a growing area within cryptocurrencies with the total stablecoin market capitalization expected to rise to trillions of dollars in the coming years.
With stablecoins (and potentially other financial assets) being issued in Bitcoin and transacted over the Lightning Network, this could allow people to transact globally at much lower fees than traditional networks like Visa, or even potentially other blockchains.
