In brief
- Stablecoin giant Tether is bringing USDT to the Bitcoin network.
- Users will be able to spend their stablecoins on Bitcoin’s network via the RGB protocol.
- Tether says it wants Bitcoin to be “everyday money.”
Stablecoin giant Tether is pushing further into the Bitcoin ecosystem, announcing on Thursday that it would make its USDT token available on the largest crypto network via the RGB protocol.
RGB allows users to issue assets on the blockchain, opening “the door for stablecoins to exist natively on Bitcoin,” Tether said in a press release.
“For Tether, this means USDT can be transacted directly on the world’s most secure and decentralized network, bringing fast, private, and lightweight payments to billions of people globally,” the company said in the release.
The announcement comes nearly eight months after Tether said that it was making its main crypto product available on the Bitcoin blockchain via Lightning, a Layer 2 network that aims to speed up transactions. That integration marked a significant milestone for both Tether and Bitcoin, two dominant forces in crypto that had yet to combine forces.
It also follows positive developments for stablecoins, most notably the passage of the Genius Act that sets U.S. guidelines for the tokens. U.K. bank Standard Chartered has predicted that stablecoins’ market capitalization will triple by the end of 2026.
RGB (Real Good Bitcoin) uses smart contracts allowing functions to be executed on a blockchain and contain code that powers autonomous crypto applications, meme coins, and more. They have been available on other crypto networks, like Ethereum.
Tether said RGB was designed to make Bitcoin foundational for daily transactions. Users will be able to keep their stablecoins and BTC in the same wallet and make transactions offline.
“Bitcoin deserves a stablecoin that feels truly native, lightweight, private, and scalable,” said Paolo Ardoino, CEO of Tether. “With RGB, USD₮ gains a powerful new pathway on Bitcoin, reinforcing our belief in Bitcoin as the foundation of a freer financial future.”
El Salvador-based Tether mints USDT, the fourth-biggest cryptocurrency with a more than $167 billion market cap and generally the most-traded digital asset. Most stablecoins are pegged to the value of the U.S. dollar.
Tether keeps a vault of dollar reserves.
Crypto traders use stablecoins to execute transactions seamlessly without using a traditional bank.
But Tether says USDT is now also used by people in emerging markets with weak currencies who want exposure to U.S. dollars.
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Source: https://decrypt.co/337203/tether-brings-usdt-bitcoin-layer-2-network-rgb
