Non-custodial exchange service Boltz announced on March 18 a feature that allows you to convert bitcoin on the Lightning Network to the stablecoin Tether (USDT) through atomic swaps, without the need for intermediaries, accounts or identity verification.
As published by the company in its X account, users can send, through the Boltz Exchange portal, satoshis via Lightning network and receive USDT on Arbitrum compatible networks. The process also works in reverse, allowing stablecoins to be converted into bitcoin within the payment network.
The tool uses atomic swaps, a mechanism that executes the exchange conditionally: the operation is only completed if both parties meet each otherwhich prevents one of them from being left unexecuted. This type of scheme seeks to reduce counterparty risk without resorting to custodians. In turn, it allows the execution of decentralized exchanges between cryptocurrencies from different networks through bridges or bridges.
To achieve the conversion, The system uses tBTC as a technical bridge (a type of bitcoin wrapped or wrapped) on Arbitrum, which is then exchanged for USDT within the same trade. The entire process happens in the background, without the user having to interact directly with multiple networks.
Greater interoperability between networks
The integration is supported by USDT0, a version of USDT designed to operate between different networks using the LayerZero protocol. This is the infrastructure that allows communication between blockchains without the need for centralized intermediaries.This approach seeks to concentrate liquidity in a single tokenrather than fragmenting it across multiple versions of the stablecoin.
In addition, Boltz indicated that the tool incorporates abstraction of commissions, which prevents users from having to own additional tokens —like ether—to pay fees on the destination network.
The company noted that it plans to extend this functionality to other layers of the Bitcoin ecosystem, including the mainnet, Liquid Network and Rootstock. as well as external networks such as Tron and Solana.
This development joins other recent attempts to connect Lightning with different networks. As reported by NoticiasVE, atomic exchanges have previously been implemented between Lightning and Liquid, with the aim of facilitating transfers between layers without depending on centralized platforms.