Which tokens can you send on Bitcoin Lightning?
Lightning moves only bitcoin natively; other tokens need an overlay such as Taproot Assets plus a compatible wallet, and support is still early.
Vahe HakobyanEditor-in-chief
Updated Oct 6, 20263 min readFact-checked
On this page
- Taproot Assets can carry stablecoins, NFTs and other issued assets.
- Sending those assets takes a Taproot Assets wallet.
- Bitcoin has no native token standard, so wallet support varies.
The Lightning Network is a system built on top of Bitcoin that is meant to let people make fast, cheap bitcoin payments. It was built to handle more payments than Bitcoin's base layer can process on its own.
What tokens work on Lightning?
Natively, Lightning moves bitcoin and nothing else. It has no built-in way to carry ERC-20 tokens or other issued coins. Anything else needs a separate protocol layered on top, such as Taproot Assets.
How do Taproot Assets work on Lightning?
Taproot Assets records issued assets on Bitcoin and lets them move through Lightning channels. You need a Taproot Assets wallet to hold or send them, and a standard Lightning wallet usually will not show them. Issuers use the protocol for stablecoins, NFTs and other assets.
What are the limits of Lightning tokens?
Lightning's speed and low cost are proven for bitcoin payments, while token support is early and limited.
- Routing for an issued asset can be thin, so a token payment may fail.
- Some issuers can freeze their tokens under the asset's rules; bitcoin has no issuer.
- Not every Lightning wallet recognizes issued assets.
How is this different from Ethereum tokens?
Ethereum's smart contracts allow token standards like ERC-20, so wallets built for that standard can handle its tokens. Bitcoin never defined a native token standard, and tokens on Bitcoin rely on separate designs, such as overlays like Taproot Assets.
Bitcoin price todayLive price, charts and market data live in our Coins section.Frequently asked questions
Not natively. Lightning moves bitcoin, and USDT is issued on other blockchains. A dollar stablecoin would have to be issued as a Taproot Assets token first.
A Bitcoin wallet with extra software for issued assets. It stores proof of your asset balance next to any bitcoin in the same wallet.
The IRS treats crypto as property. Buying crypto with US dollars is not a taxable event, but trading one crypto for another, a stablecoin included, or paying with crypto is.
Few exchanges list them, and support shifts. Check that an exchange accepts the asset and Lightning deposits before you send.
