Tether Subsidiary Synonym Will Build Tools for Bitcoin, Lightning
Synonym Software was founded today by the major stablecoin firm Tether.
Key Takeaways
- Synonym Software was launched today by Tether Holdings Ltd., best known as the issuer of the USDT stablecoin.
- Synonym will build software for Bitcoin and the Lightning Network beginning with two products: Blocktank and Slashtags.
- It is unclear how deeply involved Tether will be in Synonym's day-to-day operations.
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Synonym Software, a blockchain software company owned by the popular stablecoin firm Tether, was founded today. Synonym Software will create tools for Bitcoin and the Lightning Network, with two initial products pending for release.
Slashtags and Blocktank Are on the Way
The company will first release a product called Slashtags, a Web3 protocol that can be used for content publishing and search services. Though Slashtags does not require blockchain integration, users will be able to monetize content with Bitcoin.
Synonym is also planning to release Blocktank, a service that will allow users to purchase connections on Bitcoin’s Lightning Network. This eliminates the need for users to follow the technically complex process of creating a Lightning channel.
Beyond this, the company is also working on a mobile wallet with support for Bitcoin and the Lightning Network.
The company aims to promote Bitcoin adoption. “Hyperbitcoinization won’t magically happen on its own… we need a strategy and ecosystem to replace the legacy economy,” CEO John Carvalho has said elsewhere. “That is where Synonym comes in.”
How Does Synonym Relate to Tether?
Tether Ltd. acts as a stablecoin issuer and is best known for its U.S. dollar-pegged USDT token. As such, Synonym represents a new direction for the company with its focus on Bitcoin and Lightning.
Tether will be integrated with Synonym in one important way: instant Tether tokens will be available on the Lightning Network through Blocktank and the company’s mobile wallet.
Additionally, Tether CTO Paolo Ardoino will serve as the CTO of Synonym. Beyond this, the two companies have substantially different teams.
Nevertheless, Carvalho has hinted at a deeper relationship. In a statement to Bitcoin Magazine, he said that Synonym’s relationship with Tether and Bitfinex means that it is “positioned to integrate all of these companies’ products in a strategic way for Bitcoin.”
Tether has historically maintained a close relationship with its sister company, Bitfinex. That strategy has attracted plenty of controversy due to a past lawsuit in which regulators accused Tether and Bitfinex of mismanaging funds to cover up losses.
With few other specifics about Synonym’s future plans, it remains to be seen how close of a relationship these firms will maintain beyond Tether’s role in founding the new company today.
Disclosure: At the time of writing this author held less than $100 of Bitcoin, Ethereum, and altcoins.
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