Tether confirmed on August 28 that its flagship USDT Stablecoin will be issued directly in Bitcoin via the RGB protocol.
This is the first time that major Stablecoins have been deployed natively on the Bitcoin network, rather than on sidechains or wrapped assets.
Speaking about the move, Tether CEO Paolo Aldoino said:
“Bitcoin deserves a stubcoin that feels truly native, lightweight, private and scalable. With RGB, USDT will gain a powerful new pathway for Bitcoin, enhancing the belief in Bitcoin as the basis for a free financial future.”
What is RGB?
RGB is an asset issuance protocol designed to work over Bitcoin and the Lightning network.
Instead of recording token data on-chain, it locks the proof into a Bitcoin transaction while retaining user device details. This model reduces blockchain congestion, enhances privacy and allows for payment of myopia lightning.
The RGB Association said its features highlight a change in Bitcoin’s role beyond the value store.
With RGB, this network can now support Stablecoins, tokenized assets, and programmable contracts without changing consensus rules.
The protocol promoted mainnet preparation earlier this year with version 0.11.1, allowing developers to build and manage tokenized assets without changing the basic layer of Bitcoin.
Why is this important?
By pinning Stablecoin to Bitcoin, Tether is effectively testing whether the world’s safest blockchain serves as the fundamental layer of everyday digital payments.
With this in mind, Stablecoin integration allows Bitcoin users to keep USDT and BTC in the same wallet, send private transactions that obscure the balance, and use the Lightning channel for immediate payments.
So, if wallet and merchant adoption continues, Bitcoin’s ridiculous idiot could evolve from experiments to the core of financial infrastructure.
For Tether, who commands market value of over $170 billion and controls small retail wallets, this could significantly increase the adoption of assets within the Bitcoin ecosystem.
In particular, early demonstrations included live bridges that move USDT from Ethereum to RGB, signaling the possibility of cross-chaining.
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