Tether has officially announced the launch of its USD₮ (USDT) stablecoin on the Bitcoin blockchain using the RGB (Real Good Bitcoin) protocol. This is a big step towards the mainstreaming of stablecoins in the Bitcoin ecosystem. The RGB protocol is a smart contract and asset issuance platform for Bitcoin and the Bitcoin Layer 2 network, Lightning.
What is RGB?
Developers designed RGB as a next-generation protocol to issue digital assets directly on Bitcoin. With its recent mainnet release (version 0.11.1), RGB facilitates private and scalable transactions.
For the first time, users can store and transfer USDT alongside Bitcoin in the same Bitcoin wallet using RGB. The protocol supports client-side verification, allowing user devices to privately validate transaction data. Such an architecture strongly contributes to enhancing user privacy and lowering the cost of transactions compared to legacy protocols like the Omni Layer.
Amongst the RGB features is support for off-line and scalable transfer. This adds some convenience to the use of stablecoins inasmuch as it eliminates the dependence on a constant connection, thus making it usable within low-bandwidth contexts or mobile-based use. RGB avoids traditional blockchain constraints, so it doesn’t increase base-layer congestion on Bitcoin. Instead, it relies entirely on Lightning for faster settlements.
Tether Spikes on Lightning Expansion
This move follows Tether’s earlier efforts to introduce USDT into Bitcoin’s scaling solutions. Tether already launched USDT on the Lightning Network towards the end of 2024, enabling cheaper and faster USDT transfers on Bitcoin’s most-used Layer 2 network. With RGB, the company now introduces privacy and offline usability on top of that.
RGB complements Lightning payment channel with real-time settlement by native asset issuance without blockchain trace. They build a secure, scalable platform for USDT spending as digital currency on Bitcoin collectively. Consumers benefit from the security and decentralization of Bitcoin with easy stable-value payments.
Strategic Growth in the Stablecoin Market
USDT listing on RGB is Tether’s move to integrate stablecoins deeper into central blockchain infrastructures. USDT is currently the fourth-largest cryptocurrency and largest supply stablecoin by market capitalization. By choosing Bitcoin and RGB, Tether is looking to transition stablecoins away from centralized platforms and onto decentralized platforms.
This launch also enables devs to build Bitcoin-native applications that require the use of stable assets. Since USDT natively has Bitcoin’s stack today, DeFi, gaming, and payment service on Bitcoin are much simpler.
Tether‘s going live on RGB is an attempt to make stablecoins the normal money, and Bitcoin will be their safe base layer.
