Lightning Labs, the developers behind the Layer-2 Bitcoin Lightning Network, has raised $70 million in a Series B funding round to build a stablecoin and asset protocol on the Bitcoin network.
The network, dubbed “Taro”, will be based on Taproot, a recent blockchain upgrade. The funding round was led by Valor Equity Partners and joined by Baillie Gifford, Goldcrest, Kingsway, Stillmark, Brevan Howard, and NYDIG.
Taro: Instant Stablecoin Transactions on the Bitcoin Network.
Lightning Labs describes Taro as an asset overlay network on Bitcoin. According to the announcement, Taro aims to bring stablecoins to the Bitcoin blockchain for instant USD and other fiat-pegged asset settlements.
Taro will help developers issue assets on the Bitcoin blockchain and onboard them to the Lightning Network for speed and scalability. Lightning Labs further explained Taro will leverage Bitcoin’s liquidity to ensure interoperability between assets.
Lightning Labs will not be issuing a stablecoin, as Taro is not a stablecoin but rather a protocol that will support the movement of assets across Lightning.
On The Flipside
- The growing regulatory heat faced by stablecoins could potentially affect the development and deployment of Taro.
Why You Should Care
Taro could aid in furthering Bitcoin’s adoption, as it would potentially allow more users in developing countries to send fiat-backed stablecoins without needing to tap into the traditional systems.