Tether is launching USDT on the RGB protocol, which establishes a Bitcoin-native framework that avoids the need for bridges and wrapped assets, potentially reshaping the chain’s functionality beyond just being a store of value.
Summary
- Tether is introducing USDT on Bitcoin through the RGB protocol, facilitating native transactions without bridges or wrapped tokens.
- This integration supports private, lightweight transactions, BTC–USDT wallets, and offline payment options, enhancing Bitcoin’s role beyond being merely digital gold.
- This represents a strategic shift for Tether, which aims to utilize Bitcoin’s security and scripting features to mitigate counterparty risks and explore its potential as a true settlement layer.
On August 28, the USDT issuer Tether announced its plans to deploy the stablecoin on the RGB protocol, a newly introduced framework aimed at enhancing Bitcoin’s features beyond mere value storage.
This initiative will enable USDT to function natively on Bitcoin without dependence on wrapped assets or external bridges, following the recent mainnet release of RGB 0.11.1. Tether claims this integration will allow for private, lightweight transfers, the option to hold USDT and BTC in a single wallet, and even offline payment capabilities.
Aligning with Bitcoin’s essence
This action signifies a clear strategic alignment for Tether, focusing on Bitcoin’s inherent security over the convenience of other networks. While the company has launched its stablecoin across numerous multi-chain platforms, including Ethereum and Tron—each hosting over $80 billion in USDT—this RGB integration is notably distinct.
It utilizes Bitcoin’s built-in scripting functions and the protocol’s unique client-side validation to form a version of USDT that is genuinely integrated into the Bitcoin ecosystem, rather than being just an external participant on its ledger. This strategy reduces counterparty risks and takes full advantage of the network’s unmatched security and decentralization.
“Bitcoin deserves a stablecoin that feels genuinely native, lightweight, private, and scalable,” stated Tether CEO Paolo Ardoino. “With RGB, USDT gains an impactful new pathway on Bitcoin, reinforcing our conviction in Bitcoin as the cornerstone of a more liberated financial future.”
This conviction is significant, considering USDT’s vast presence. With a market capitalization of $267.34 billion, USDT stands as the largest stablecoin in circulation and a critical component of global crypto liquidity. Its supply is diversified across multiple blockchains, including Celo and Cosmos, rendering the stablecoin a truly multichain asset.
By extending to RGB, Tether is exploring whether Bitcoin can emerge as a primary settlement layer, rather than just an auxiliary network.
