- Tether will issue USDT directly on Bitcoin using the RGB protocol, removing dependence on other blockchains for transactions.
- RGB enables stablecoins to operate natively within Bitcoin wallets while preserving decentralization and privacy.
- This launch may boost Bitcoin liquidity and offer a more seamless route for users to interact with BTC through stable assets.
Tether has announced that it will begin issuing its USDT stablecoin natively on the Bitcoin blockchain. This marks the first time the company will offer its stablecoin directly on the Bitcoin network. The deployment will use RGB, a smart contract protocol designed for Bitcoin, enabling users to transact USDT directly within the Bitcoin ecosystem.
The RGB protocol recently reached its mainnet phase. It allows digital assets like USDT to be issued and transferred on Bitcoin’s Layer 2 and 3 solutions while preserving the core principles of decentralization and security. Tether previously issued USDT on blockchains like Ethereum, Tron, Solana, and TON, requiring users to bridge assets via centralized or decentralized exchanges.
Direct Access to Bitcoin Through USDT
This development eliminates the reliance on other networks for Bitcoin purchases using USDT. Investors can now hold and transfer the stablecoin alongside Bitcoin within the same wallet environment. This native integration is expected to improve liquidity and enhance user access to Bitcoin without intermediaries.
With native stablecoins now possible, Bitcoin moves beyond being a store of value. Tether emphasized that the network can now support a broader range of financial applications. The launch introduces new capital inflow avenues, offering potential boosts to Bitcoin trading volume and market activity.
Statement from Tether’s CEO on USDT for Bitcoin
Paolo Ardoino, CEO of Tether, stated that Bitcoin deserves a stablecoin that is native, lightweight, private, and scalable. He described RGB as a significant step forward, enhancing USDT’s utility on Bitcoin. Ardoino reiterated the company’s long-term commitment to the Bitcoin ecosystem.
Tether is already one of the largest corporate holders of Bitcoin, with 77,780 BTC reported in its Q2 financials. It also owns a majority stake in Twenty One Capital, which may soon become one of the top public Bitcoin treasury holders. With a current USDT market capitalization of $167 billion, Tether remains the dominant stablecoin issuer in the cryptocurrency space.
