Tether Joins $8M Funding Round for Bitcoin Lightning Startup Speed

Stablecoin giant Tether has made a strategic investment in Speed1, Inc., a payments infrastructure firm utilizing the Bitcoin layer-2 Lightning Network to build global stablecoin settlement rails for consumers, creators, platforms, and enterprise merchants.

The Bitcoin-focused startup serves more than 1.2 million customers worldwide and processes over $1.5 billion in annual payment volume using its Speed Wallet and Speed Merchant products.

Tether Backs Speed in $8M Lightning Payments Funding Round

Tether co-led Speed’s $8 million funding round alongside Ego Death Capital, a Texas-based venture capital firm founded by Jeff Booth that primarily invests in companies building products and services on the Bitcoin network. The platform enables instant, low-cost payments by combining Lightning’s high-speed transaction capabilities with stablecoins for price stability, providing enterprise customers with a reliable global routing network that supports native BTC and USDT settlements.

Speed said that the funding will be used to support product development and continue its global expansion. The move also aligns with Tether’s strategy to support and strengthen Bitcoin-based financial infrastructure, while expanding real-world use cases for its flagship product, USDT.

“Speed is showing what Lightning can achieve when paired with a stable, liquid digital dollar like USDT,” said Tether CEO Paolo Ardoino in a Tuesday press release.

He noted that Tether supports companies building “practical infrastructure” that helps reduce friction in payments and expands access to reliable settlement rails. Ardoino also highlighted that Speed’s execution and adoption signal that Bitcoin-rooted networks are ready for mainstream commerce.

Speed positions its infrastructure as a bridge between Bitcoin-native networks and practical payment needs, particularly for cross-border transactions, creator payouts, and merchant settlement, in a compliant and globally accessible manner. By integrating stablecoins alongside Lightning, the company enables users and businesses to choose between exposure to volatility and price-stable settlement, depending on their specific use case.

“Crypto has lived in the world of speculation for too long. Speed is making it usable – instantly, globally, and at scale. Lightning gives us speed; stablecoins give us universal access; our infrastructure brings it all together for consumers, creators, and merchants,” said Niraj Patel, CEO of Speed.

Tether Invests in 140+ Firms Across Bitcoin Mining, AI, and Healthcare

Tether has invested in over 140 companies, ranging from Bitcoin mining to AI, energy, finance, robotics, healthcare, and even sports teams. The majority of these investments stem from the stablecoin giant’s operating profits in recent years, which derive from interest on U.S Treasury bills that back USDT – the world’s largest fiat stablecoin with a $186 billion market capitalization.

The company saw $13.4 billion in net profit last year and reported more than $10 billion in profits across the first three quarters of 2025. It is regarded as one of the most profitable firms in the world on a per-employee basis. Tether is among the largest holders of T-bills, ranking 17th globally with $135 billion in holdings as of October 2025. This positions the creator of USDT ahead of nations such as South Korea and Germany, reflecting its significant influence in global financial markets.

Tether is also a major buyer and backer of BTC, holding nearly $10 billion worth of the alpha digital asset in its reserves. The company is reportedly working towards raising $20 billion in funding at a valuation of $500 billion. It recently participated in an $81 million seed round of the robotics startup Generative Bionics. In November, it boosted its total position in the video streaming platform Rumble to around $67 million. 

Last week, Tether made an all-cash offer valued at around $1.2 billion to acquire a majority stake in the Italian football giant Juventus. The company is already the second-largest shareholder in one of the most successful European sports teams after acquiring a minority stake earlier this year. However, the Agenlli family, which has owned and managed the 36x Serie A and 2x UEFA Champions League winners for over 100 years, has rejected the offer.

At the time of writing, Bitcoin (BTC) is trading at $86,606 – down 0.75% in 24 hours. 

Also Read: XRP Update: XRP Expands to Multiple Blockchains as ETFs See Steady Inflows