USDT issuer Tether has revealed plans to issue the stablecoin natively on the Bitcoin network. The launch of the Bitcoin USDT is likely to improve liquidity on the network and possibly boost trading of the flagship cryptocurrency.
Tether Announces Plans To Launch Bitcoin USDT
In a blog post, the stablecoin issuer announced plans to launch USDT on the Bitcoin network via RGB, a protocol that enables firms like Tether to issue digital assets on the network. The protocol recently reached mainnet and enables native stablecoins to exist on Bitcoin, making the flagship crypto more than just a store of value.
Tether noted that the launch of Bitcoin USDT means that users can transact directly on the world’s most secure and decentralized network. Previously, the stablecoin issuer had only minted USDT on other top layer-1 networks, such as Ethereum, Solana, Tron, and TON.
This meant that investors who wanted to invest in Bitcoin using USDT had to use the stablecoin on these other networks to buy the flagship crypto through a centralized exchange (CEX) or decentralized exchange (DEX).
However, the launch of the stablecoin directly on Bitcoin now makes it easy to buy BTC directly on the network, which could boost capital inflows and potentially serve as a catalyst for a higher Bitcoin price.
Tether further stated that the launch of the Bitcoin USDT will help unlock a new frontier for money on the network. Now, users will be able to hold and transfer the stablecoin alongside their BTC in the same wallet. The stablecoin issuer added that the combination of Bitcoin’s security and its stability represents a major step toward making the stablecoin truly native to the Bitcoin ecosystem.
Tether’s CEO Comments On This Move
Tether CEO Paolo Ardoino stated that Bitcoin deserves a stablecoin that feels “truly native, lightweight, private, and scalable.” He further remarked that with RGD, USDT gains a powerful new pathway on Bitcoin, reinforcing their belief in Bitcoin as the foundation of a freer financial future.
It is worth noting that Tether, as a company, is one of the largest holders of Bitcoin, with 77,780 BTC on its balance sheet, according to its Q2 report. The company is also a majority owner in Twenty One Capital, which could become the third-largest public Bitcoin treasury company with 43,514 BTC when it goes public.
Meanwhile, the launch of the Bitcoin USDT is expected to help Tether further assert its dominance as the largest stablecoin issuer. USDT currently boasts a market cap of $167 billion and is the largest stablecoin by market and fourth-largest crypto behind BTC, ETH, and XRP.
Boluwatife Adeyemi
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Source: https://coingape.com/tether-to-launch-native-usdt-on-bitcoin-boosting-btc-liquidity/