USDT on Bitcoin | Tether Stablecoin on Bitcoin via RGB

RGB, the next-gen protocol for issuing digital assets on Bitcoin, went mainnet with its 0.11.1 release. RGB is designed to take the Bitcoin network beyond a means for storing value, and enable private, scalable, and user-controlled issuance of assets, including stablecoins.

For Tether, this means USDT will be able to run natively on Bitcoin’s infrastructure, so users will be able to hold and transfer stablecoins alongside their bitcoin in the same wallet.

And the protocol also supports offline transfers and private transactions, so stablecoins can reach even more people on the world’s first and strongest blockchain.

“Bitcoin deserves a stablecoin that feels truly native, lightweight, private, and scalable,” said Paolo Ardoino, CEO of Tether. “With RGB, USDT gains a powerful new pathway on Bitcoin, reinforcing our belief in Bitcoin as the foundation of a freer financial future.”

RGB is an open-source smart contract system for Bitcoin and the Lightning Network. By using client-side validation and leveraging Lightning for scalability, RGB reduces congestion on the Bitcoin blockchain while preserving privacy.

It also supports tokenized assets beyond stablecoins, including NFTs and custom tokens, making Bitcoin an even broader platform for innovation.

Related: Bitcoin Smart Contracts | What Are They and How Do They Work?

For users, this means fast and low-cost transactions directly on Bitcoin. No more wrapped tokens or third-party bridges. Users will be able to transact in USDT natively within their Bitcoin wallets.

According to Tether, this combination of Bitcoin’s security and Tether’s stability would enable billions of people around the world to access stablecoins in a safer, faster, and more cost-effective way.

Many believe stablecoins are essential to the digital asset economy, forming a bridge between traditional money and digital assets.

But most stablecoins have been issued on networks like Ethereum, Tron and Solana. Tether’s launch on RGB is bringing stablecoin adoption directly into the Bitcoin ecosystem.

The company says that by issuing USDT on Bitcoin, users will be able to send and receive money in a stable currency while still getting the security and decentralization of Bitcoin.

This will be especially useful in areas where access to stable financial tools is limited.

Industry insiders see this as a way to expand Bitcoin’s functionality and make it more competitive with Ethereum-like ecosystems, which have dominated the stablecoin space.

With RGB, Bitcoin can now support lending, payments, and other financial applications and compete with other blockchains.

The announcement comes at a time when exchanges’ stablecoin reserves are at an all-time high, but recent data shows growth is slowing down compared to the inflows of late 2024.

Tether’s USDT is the largest stablecoin and this will help to sustain its position in the market.

Tether itself is one of the biggest believers in Bitcoin. According to BitcoinTreasuries, Tether Holdings Limited is the second-largest holder of bitcoin with over 100,000 BTC in its reserves.