The launch of Tether’s USDT on Bitcoin’s RGB protocol marks a significant development in the stablecoin landscape, introducing a native issuance mechanism that operates directly on Bitcoin’s network without relying on sidechains or external intermediaries. Announced in August 2025 following the July mainnet release of RGB v0.11.1, this integration allows USDT to be issued, managed, and transferred natively on Bitcoin, enhancing scalability and privacy while preserving Bitcoin’s decentralization. Users benefit from a unified wallet infrastructure that supports both Bitcoin and USDT holdings, enabling seamless interaction between the two assets along with offline transaction capabilities that expand usability in low connectivity environments.
Tether’s USDT now issues natively on Bitcoin’s RGB, boosting scalability, privacy, and seamless asset management.
The RGB protocol itself is built atop Bitcoin’s Lightning Network, leveraging its speed and efficiency to overcome traditional limitations associated with tokenized assets on Bitcoin. Version 0.11.1 introduces critical features such as user-controlled native issuance and scalable asset management, which are essential for supporting a robust stablecoin ecosystem. Privacy functionalities embedded within RGB provide a notable advantage over many Ethereum-based stablecoins, offering transaction confidentiality without compromising security. This advancement positions Bitcoin not merely as a store of value but as a dynamic platform for programmable contracts and tokenized assets, broadening its financial utility. Moreover, USDT’s role as a stable medium of exchange will likely expand with increased adoption on Bitcoin’s network, reinforcing its position in the crypto economy stable medium of exchange.
USDT remains the largest stablecoin globally, with a market capitalization near $167 billion and dominance exceeding 60% of the stablecoin sector as of mid-2025. Historically launched in 2014 and pegged 1:1 to the US dollar, USDT enjoys extensive adoption across more than 20 blockchain networks and widespread merchant use, particularly in regions experiencing local currency volatility. Institutional investors hold significant USDT reserves for liquidity and arbitrage purposes. The strategic shift to RGB, accompanied by the planned cessation of USDT support on several other blockchains from September 2025, underscores Tether’s commitment to consolidating stablecoin issuance on Bitcoin.
While the native issuance on RGB promises enhanced scalability, privacy, and decentralization, it also introduces integration risks and requires users’ technical familiarity with Bitcoin’s evolving infrastructure. Careful monitoring of adoption trends and network performance will be essential to assess the long-term impact of this transition on both the stablecoin market and Bitcoin’s role as a financial ecosystem.
