Tether Leads $8M Funding for Lightning Startup Speed

Tether leads $8M funding in a significant step to secure stablecoin transactions on the Lightning Network on Bitcoin and support Bitcoin startup Speed as it pursues enterprise-level applications. The issuer of the stablecoin was the first to raise the $8 million round of investment to help Speed with its mission of making it possible to make high-volume and low-cost payments with stablecoins through the layer-2 infrastructure of Bitcoin.

The investment underscores the increased attention that Tether is paying to Bitcoin-based payment systems as it broadens the real-world use cases of Tether (USDT), the largest stablecoin in the world.

How Speed Uses Lightning Network for Stablecoin Payments

Speed is developing payment infrastructure enabling stablecoins to use the Lightning Network effectively. Tether states that Lightning can scale to enterprise-grade transactions, which is demonstrated by the technology of the startup. The architecture of Speed shows that Lightning and stablecoins can collaborate to transfer money “at high scale with low fees, strong compliance, and global reach,” according to a statement by Tether on Tuesday.

Tether CEO Paolo Ardoino also highlighted the bigger picture of what the implementation and adoption of Speed meant: “Speed’s execution and adoption signal that Bitcoin-rooted networks are ready for mainstream commerce.”

Ego Death Capital Joins as Tether Leads $8M Funding

In addition to Tether, Bitcoin-oriented venture capital firm Ego Death Capital also participated in the 8 million dollar investment round in Speed. Speed has over 1.2 million consumers, creators, platforms, and enterprise merchants today being served via Speed Wallet and Speed Merchant products. The firm has over $1.5 billion in annual payment volume, which makes it a major participant in the Lightning-based payments infrastructure.

Tether’s Strategy to Expand USDT Utility on Bitcoin

The investment in Speed is part of the larger plan by Tether to support Bitcoin-native payments and increase the utility of USDT. Ardoino claimed that Tether is oriented to the practical infrastructure, enhancing the efficiency of payments: “We back teams building practical infrastructure that reduces friction in payments and increases access to reliable settlement rails.”

Tether Profits Fuel Over 140 Global Investments

Tether has invested in over 140 firms, with areas including mining of bitcoins, artificial intelligence, energy, finance, and even football clubs. Such investments are mostly financed by the huge profit of Tether, caused mainly by the interests charged on US Treasury bills that support USDT, which boasts a market cap of $186.3 billion.

Tether Continues to Generate Billions in Profit

Tether recorded over 10 billion dollars in profits over the first quarter of 2025, on top of 13.4 billion in profits in 2024. It is still among the most profitable companies in the world per-employee. As Tether leads $8M funding into Speed, the action highlights its interest in developing Lightning Network payments and scaling up adoption of stablecoins in the Bitcoin ecosystem.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.