Key facts
- Breez's new SDK feature allows Bitcoin holders to send USDC and USDT payments.
- Payments can be routed across more than 30 blockchain networks.
- Users do not need to hold stablecoins to send them.
- The feature utilizes the Lightning Network and liquidity providers for conversion.
- It is a non-custodial solution for outbound stablecoin payments.
Bitcoin infrastructure company Breez has introduced a new feature within its developer toolkit that enables users to send USDC and USDT stablecoins across more than 30 blockchain networks directly from a Bitcoin balance. This functionality eliminates the need for users to hold or convert stablecoins prior to sending them.
The feature leverages the Lightning Network and automated conversion processes to route payments from Bitcoin (BTC) to USDC or USDT, which are then delivered to the recipient's specified blockchain. When a user initiates a payment, the Breez SDK identifies the destination blockchain, calculates the conversion route, and displays the total amount, network fees, and other details before confirmation. The transaction is processed through liquidity providers such as Flashnet and Boltz, which handle the conversion of the sender's Bitcoin into stablecoins and their delivery on the recipient's chosen network.
Roy Sheinfeld, CEO of Breez, explained that the feature does not require USDT or USDC to be issued on the Lightning Network itself. Instead, it relies on interoperability to allow users to spend from their Bitcoin balance while recipients receive stablecoins on supported networks. Breez stated that users retain their Bitcoin until a payment is initiated, and recipients receive stablecoins on their preferred blockchain without the sender needing to manage separate stablecoin balances. This non-custodial feature currently supports only outbound stablecoin payments, with plans to add support for receiving stablecoins from external networks in the future.
This development occurs amidst a broader expansion of Bitcoin and the Lightning Network into new financial and commercial applications. Recent examples include Secure Digital Markets completing a $1 million Bitcoin payment to Kraken over the Lightning Network in under half a second, demonstrating its potential for institutional transfers. Voltage introduced a revolving credit line embedding business credit into Lightning payment flows, and Satlantis launched a Bitcoin-native ticketing platform. Additionally, Ark Labs, a Bitcoin infrastructure startup, raised $5.2 million to support stablecoin issuance and settlement on Bitcoin. Reports indicate that the Lightning Network's monthly transaction volume has grown significantly, surpassing $1 billion.