Taproot Assets v0.8 Brings Scalable Stablecoin Transfers to Lightning Network

Lightning Labs engineers have released Taproot Assets v0.8 in June 2026, which enables stablecoins like USDT to be transferred over the Lightning Network. This update improves scalability by allowing signature aggregation through Schnorr signatures. The system relies on a Merkle-Sum Sparse Merkle Tree to prove that the total supply remains constant during transfers.

The protocol uses Bitcoin as a universal routing currency to solve liquidity fragmentation. To manage asset data, Taproot Assets uses off-chain Universes, which index transaction data and serve proofs to holders. Participants bear the cost of storage and verification.

Elizabeth Stark leads Lightning Labs as CEO. The company raised a $70 million Series B to build Lightning Network infrastructure. The current Lightning Network capacity exceeds 4,900 BTC and contains more than 45,000 channels, serving users in emerging markets including Nigeria and Brazil.