In a landmark development for the Bitcoin ecosystem, Tether, the issuer of the largest stablecoin USD₮, has announced a plan to bring its stablecoin to the Bitcoin network.
This will be achieved using the RGB protocol, a next-generation technology that enables the issuance and transfer of digital assets on Bitcoin and the Lightning Network.
The foundation of a freer financial future
This move is a game-changer for several reasons. First, it addresses the long-standing need for a native stablecoin on Bitcoin. By leveraging RGB, USD₮ will gain a “new pathway” that is lightweight, private, and scalable. Unlike other stablecoins that exist on Bitcoin via sidechains or less-integrated methods, USD₮ on RGB will function as a “truly native” asset. This means users can hold and transact USD₮ alongside their Bitcoin in the same wallet, and even use the Lightning Network for near-instant settlement.
Second, this initiative reinforces Bitcoin’s evolving role beyond just a store of value. The RGB protocol, with its focus on client-side validation and off-chain data, allows for the creation of stablecoins and other programmable assets that inherit Bitcoin’s robust security model without causing network bloat.
Paolo Ardoino, CEO of Tether, emphasized that this move reinforces their belief in Bitcoin as “the foundation of a freer financial future.”
He commented in the
official announcement:
“With RGB, USD₮ gains a powerful new pathway on Bitcoin, reinforcing our belief in Bitcoin as the foundation of a freer financial future.”
Finally, this adoption by a major issuer like Tether is a strong signal to the entire industry. It is expected to catalyze broader wallet support, merchant adoption, and the development of new infrastructure to integrate USD₮ and other assets across Bitcoin’s native rails.
Source: https://coinidol.com/tether-issue-usdt-on-bitcoin/
