Elizabeth Stark, CEO of Lightning Labs, stated that tokenized assets, such as stablecoins, are next to appear on top of the lightning network (LN), Bitcoin’s layer two scaling protocol. Stark highlighted the transformative possibilities of this upgrade, stressing that it would allow users to complete stablecoin payments leveraging affordable LN transaction fees.
Lightning Labs CEO Elizabeth Stark States Stablecoins Are Coming to the Lightning Network
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Lightning Labs CEO Elizabeth Stark: Stablecoins and Tokenized Assets Are Coming to Lightning Network
Lightning Network (LN), Bitcoin’s scaling layer, is evolving to include more functionalities. Elizabeth Stark, CEO of Lightning Labs, explained that the technical capabilities for launching stablecoins and tokenized assets on top of LN were already being developed.
The company recently demoed the first asset transaction on LN, with its CTO Olaoluwa Osuntokun issuing and transacting “beefbux,” the first tokenized asset issued on top of LN. Introducing these assets on top of Lightning would offer more opportunities to users looking to avoid the price volatility of bitcoin but seeking to enjoy the security of the Bitcoin network.
At the recent FT Live’s Crypto and Digital Assets Summit held in London, Stark remarked on the relevance of crypto assets, both bitcoin and stablecoins, for people in countries facing economic woes and looking for a stable store of value. She acknowledged that users in these situations are not exclusively using bitcoin, but a combination of bitcoin and stablecoins, in some cases.
Stark also highlighted the payment use case of these assets on top of LN, stating that fees would allow it to compete with existing systems. On this, she declared:
Compared to traditional systems like Visa, where fees in the U.S. can be as high as 3%, the cost of transacting stablecoins on the Lightning Network can be dramatically lower, often just a cent or less.
Stark also revealed that Lightning Labs is working on infrastructure to enable institutions to leverage LN for issuing tokenized assets, like gold or fiat-backed instruments. However, she offered no more details on this subject.
What do you think about implementing tokenized assets, including stablecoins, into Bitcoin’s lightning network? Tell us in the comments section below.
