Tether confirmed on Aug. 28 that its flagship USDT stablecoin will be issued directly on Bitcoin via the RGB protocol.
This marks the first time a major stablecoin is being deployed natively on the Bitcoin network rather than through sidechains or wrapped assets.
Speaking on this move, Tether CEO Paolo Ardoino said:
“Bitcoin deserves a stablecoin that feels truly native, lightweight, private, and scalable. With RGB, USDT gains a powerful new pathway on Bitcoin, reinforcing our belief in Bitcoin as the foundation of a freer financial future.”
What is RGB?
RGB is an asset-issuance protocol designed to work across Bitcoin and the Lightning Network.
Instead of recording token data on-chain, it anchors proofs to Bitcoin transactions while keeping the details on user devices. This model reduces blockchain congestion, enhances privacy, and enables near-instant Lightning payments.
The RGB Association stated that its features highlight a shift in Bitcoin’s role beyond a store of value.
With RGB, the network can now support stablecoins, tokenized assets, and programmable contracts without altering consensus rules.
The protocol hit mainnet readiness earlier this year with version 0.11.1, allowing developers to build and manage tokenized assets without requiring changes to Bitcoin’s base layer.
Why this matters
By anchoring its stablecoin to Bitcoin, Tether is effectively testing whether the world’s most secure blockchain can serve as the base layer for everyday digital payments.
Considering this, the stablecoin integration means Bitcoin users will be able to keep USDT and BTC in the same wallet, send private transactions that obscure balances, and use Lightning channels for instant settlement.
So, if wallet and merchant adoption follow, stablecoins on Bitcoin could evolve from an experiment into a core part of its financial infrastructure.
For Tether, whose token commands more than $170 billion in market value and dominates small retail wallets, this could significantly broaden its assets’ adoption within Bitcoin’s ecosystem.
Notably, early demonstrations have even included a live bridge moving USDT from Ethereum to RGB, signaling cross-chain potential.
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