Tether, the world’s leading stablecoin issuer, has partnered with the team behind the RGB Protocol to deploy USD₮ on the Bitcoin-based protocol. Both are active contributors to the Liquid Network’s open-source community, and this collaboration marks a significant step toward combining Bitcoin’s robust base-layer security with Tether’s proven stability.
The move offers the first hope of combining Bitcoin’s base layer security with Tether’s proven stability. It unlocks the potential for payments, remittances, and creative financial cooperation worldwide.
Mainnet for RGB came this year when the project rolled out its 0.11.1 release. The protocol was designed to take Bitcoin beyond its store of value use case. It enables confidential, scalable, and user-controlled asset issuance, thus opening the doors for friction-free trading of any asset on chain, such as stablecoins like USD₮ to work directly off the bitcoin blockchain.
RGB brings USDT to Bitcoin with Lightning support
With the deployment of USDT on RGB, supporters of stablecoins will be able to access Bitcoin without having to depend on other blockchains. Investors can directly hold and send USDT alongside their Bitcoin using the same wallet. This complete user experience means stablecoins and BTC can coexist, reinforcing Bitcoin’s position not just as a store of value but as a working payment network.
RGB’s unique architecture, which uses client-side validation, makes this possible. Unlike traditional beacon chains, where every transaction is recorded publicly on-chain—raising concerns around privacy, scalability, and fees—RGB validates transactions privately on the user’s device. Only the involved parties maintain and verify the data, while the Bitcoin blockchain acts as a settlement layer, anchoring proofs of transaction validity.
Since RGB doesn’t require every transaction to be made public, it prevents blockchain bloating, reduces costs, and puts control of financial data back into the hands of users. This design also brings stronger privacy to those achieved by other stablecoin issuing mechanisms on chains like Ethereum or Tron, where transaction history is fully transparent.
Another huge benefit of RGB is that it works with the Lightning Network, Bitcoin’s most adopted scaling solution. Lightning permits fast and cheap payments by establishing off-chain payment channels that settle back onto Bitcoin only when required. Thanks to this solution, USD₮ transactions can be extremely fast, efficient, and highly scalable. This paves the way for micropayments, cross-border remittances, and online retail transactions — all denominated in a stable dollar value.
Perhaps most striking, RGB can accommodate offline transactions. This is very useful in places with restricted or unreliable internet access. USD₮ on RGB allows individuals to send and receive value without constant connectivity, bringing a lifeline for communities often left behind by digital finance.
Tether empowers Bitcoin to drive everyday payments
Tether CEO Paolo Ardoino said the launch marked an important step in offering exchanges an alternative to Tether, adding that Bitcoin deserved a stablecoin that was intuitive, lightweight, private, and scalable. He noted that RGB gives USDT a strong new pathway on Bitcoin, reinforcing confidence in Bitcoin as the future of a free financial world.
The announcement also emphasises Tether’s belief in Bitcoin in the long term. While USDT has already been issued on Ethereum, Tron, Solana, and Avalanche, bringing it to Bitcoin via RGB represents a symbolic return to the blockchain where it all began.
For Bitcoin, this marks a shift in perception. Once dismissed as speculative digital “tulip bulbs,” it is increasingly recognized as mainstream digital gold—secure and reliable, yet historically limited for everyday payments. With USD₮ on RGB, users can now not only store value in Bitcoin wallets but also spend it swiftly, privately, and securely.
Experts suggest this could further cement Bitcoin’s role in global finance. RGB positions Bitcoin as a central hub for the digital economy by reducing dependence on other blockchains for stablecoins.
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Source: https://www.cryptopolitan.com/tether-to-launch-usdt-on-bitcoin/