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Wasn't this the wallet that could hold USDt?

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Yes, BTC, LN-BTC, L-BTC, and USDt.

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It doesn't hold LN-BTC, it allows to pay LN invoices with L-BTC using swaps.

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Thanks for the clarification, I wasn't aware of that.

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Idea is that there is no need to manage LN channels and single 12 word backup is enough for all the funds in a wallet, no need to backup LN channel states, etc.

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No swap! Annoying

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