According to Elizabeth Stark, CEO of Lightning Labs, the firm is bringing stablecoins and tokenized assets to the Bitcoin (BTC) network. Stark noted that developers have begun testing the initiatives on the Lightning Network.
Speaking at FT Live’s Crypto and Digital Assets summit in London, Stark stated, ‘We released an early part of the code in October and recently demoed the first-ever transaction on Lightning of an asset. The idea is to have crypto dollars and stablecoins on the Bitcoin blockchain.‘
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Stark added that previously stablecoins and tokenized assets were hosted on other networks. However, high fees and other issues have plagued their growth. Additionally, the Lightning Labs CEO believes that the Bitcoin network is the best place to host stablecoins. She highlighted the BTC network’s security and decentralized nature.
Why will stablecoins benefit from the Bitcoin network?
Stark believes BTC and stablecoins can help store value, especially for nations battling with high inflation and devaluating fiat currencies.
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Stark stated, ‘The stickiest users have been those looking for a stable store of value. In some cases, they’re using Bitcoin. In other cases, they’re using stablecoins, and in some cases, it’s a combination of both.‘
Stark further added, ‘That’s why we’re building this protocol, this technology right now. We’re not issuing assets, we’re building the rails. Asset issuers will use our technology to issue real-world tokenized assets.‘
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Stark also highlighted how transaction fees can be lowered on the Bitcoin network. She pointed to how transaction fees on VISA can go upwards of 1%-3%. She noted that stablecoins on the BTC network will enable users to transact globally at lower rates than traditional networks.