Amboss CEO Talks Growth of the Bitcoin Lightning Network and Tether on Lightning

·

The Bitcoin Lightning Network is entering a pivotal phase of growth, and according to Jesse Shrader, CEO and co-founder of Amboss, 2025 could be the year it finally breaks into mainstream financial infrastructure. With rising Bitcoin prices and the integration of Tether (USDT) onto the Lightning Network via the Taproot Assets protocol, Shrader sees a transformative shift in how institutions and individuals approach digital payments.

Amboss, a Nashville-based company founded in March 2021 by Shrader and Anthony Potdevin, has quietly become a foundational player in the Lightning ecosystem. With a lean team of 10, the private company focuses on building intelligent, scalable tools that empower businesses to leverage Lightning for high-volume, low-cost transactions.

👉 Discover how next-gen payment infrastructure is redefining digital finance

Building the Future of Lightning Payments

At its core, Amboss is dedicated to extending Bitcoin as a global payment system—not just a store of value—by supercharging the performance and efficiency of the Lightning Network.

“We want to make Lightning a high-efficiency, high-performance system,” Shrader told Bitcoin Magazine. “Our mission is to onboard the next wave of institutional users to the world’s largest permissionless payment network.”

To achieve this, Amboss offers a suite of advanced tools designed for enterprise-grade use:

These tools are engineered for high-throughput environments, where reliability and speed are non-negotiable.

“We measure businesses’ ability to make payments using simulations,” Shrader explained. “We help them understand how much of the network they can actually reach during transaction attempts—this is crucial for scaling.”

The Evolving State of the Lightning Network

Once limited to micropayments, the Lightning Network is now handling everyday transactions ranging from $10 to $4,000, according to Shrader. While larger payments remain challenging due to capital constraints, recent developments are rapidly improving capacity.

“The increase in Bitcoin’s price has effectively expanded the size of Lightning channels,” he noted. “Since channels are denominated in BTC, higher prices mean more settlement capacity—like upgrading from narrow pipes to wider ones.”

This increased throughput is making Lightning more viable for business use cases. But Shrader believes the real game-changer is the arrival of USDT on Lightning.

Why Tether (USDT) on Lightning Changes Everything

In early 2025, Lightning Labs announced the integration of USDT onto Bitcoin and the Lightning Network through the Taproot Assets protocol. This innovation allows stablecoins like USDT to be issued and transferred natively over Bitcoin’s second layer.

For Shrader, this marks a turning point.

“Tether has clear product-market fit,” he said. “Last year alone, it processed over $10 trillion in payments—surpassing both Visa and MasterCard. The world wants U.S. dollar-denominated assets.”

While some purist Bitcoiners express concern about non-native assets on Bitcoin, Shrader takes a pragmatic view.

“I appreciate Bitcoin’s sound money properties,” he acknowledged. “But many people haven’t taken the ‘orange pill’ yet—they don’t fully understand Bitcoin, and they’re wary of volatility.”

Enter USDT on Lightning: a low-volatility digital dollar moving over secure, trustless rails.

“It’s a huge win,” Shrader emphasized. “You get the security and auditability of Bitcoin with the stability businesses and consumers demand.”

Solving Real-World Payment Problems

Shrader shared a telling example from MicroStrategy’s early corporate Lightning adoption efforts. Their first conference, “Lightning for Corporations,” encouraged companies to pay employees in Bitcoin over Lightning—without fully grasping the downstream complications.

“Employers quickly realized they faced major accounting and tax reporting burdens—like issuing 1099s for every employee paid in BTC,” Shrader recalled.

Paying salaries in USDT over Lightning solves many of these issues. It reduces regulatory overhead and minimizes counterparty risk compared to traditional banking systems—a lesson Shrader learned firsthand.

“Our payroll used to go through Silicon Valley Bank,” he said. “When it collapsed, my mid-month payroll failed. I lost half a month’s runway. That never would’ve happened on Lightning.”

👉 See how decentralized payment rails are transforming payroll and remittances

Addressing Risks Head-On

Critics point to potential risks: MEV (Miner Extractable Value) when non-native assets trade on-chain, or the possibility of a Bitcoin fork rendering USDT worthless on one chain.

Shrader isn’t overly concerned.

“MEV risks already exist with Ordinal inscriptions,” he noted. “And Bitcoin’s consensus isn’t controlled by large custodians like Coinbase—even if they support certain forks or upgrades.”

Instead, he sees new opportunities emerging:

“With USDT and BTC both transactable on Lightning, you gain native arbitrage capabilities. You can send BTC from one channel and receive USDT in another—just by paying a USDT invoice with BTC. Instant rebalancing, zero friction.”

This interoperability unlocks powerful financial engineering possibilities for traders, liquidity providers, and institutions alike.

Why 2025 Is the Year of Lightning

Shrader identifies two key catalysts that make 2025 a breakout year:

1. No Need to Hold Bitcoin to Use Lightning

Until now, using Lightning required holding Bitcoin—a major barrier for businesses unfamiliar with crypto.

“That limited the market significantly,” Shrader said. “But now, with USDT available on Lightning, users can transact without touching BTC directly.”

Outside the U.S., accessing USDT is already common and straightforward. This opens Lightning to millions of new users overnight.

“Bitcoin still benefits,” he added. “Every USDT transaction converts into BTC as it moves across channels—this increases node revenue and strengthens the network.”

2. Transaction Costs Plummet

Traditional card networks charge 3–4% per transaction, with funds settling days or weeks later.

On Lightning? “We’re supplying liquidity at less than 0.5%,” Shrader said. “Payments clear instantly. That’s nearly a 10x cost reduction.”

For merchants and global businesses, those savings are transformative.

👉 Explore how ultra-low-cost transactions are reshaping commerce

FAQ

Q: What is Amboss?
A: Amboss is a technology company building intelligent payment infrastructure for the Bitcoin Lightning Network. It offers tools like Amboss Space, Magma Marketplace, and Hydro to improve network efficiency and liquidity.

Q: Can USDT really run on the Lightning Network?
A: Yes—via the Taproot Assets protocol, USDT can now be transferred natively over Lightning, enabling fast, low-cost stablecoin payments secured by Bitcoin’s base layer.

Q: Does using USDT on Lightning compromise decentralization?
A: While USDT introduces custodial risk (users must trust Tether’s reserves), the underlying Lightning transactions remain trustless and decentralized.

Q: How does USDT benefit Bitcoin?
A: Every USDT transaction on Lightning requires BTC movement in the background, increasing demand for channel liquidity and boosting node operator revenue.

Q: Is Amboss available to individual users?
A: While Amboss tools are enterprise-focused, many features are accessible to developers and advanced users through their public platforms.

Q: Will Lightning replace traditional payment systems?
A: Not overnight—but with stablecoins like USDT and drastically lower fees, Lightning is becoming a viable alternative for global commerce.

Core Keywords:

With institutional adoption accelerating and technical barriers falling, Shrader’s vision of a scalable, efficient, and accessible payment network is closer than ever. The year 2025 may indeed go down as the year Lightning went mainstream.