Tether to Launch USDT Stablecoin on Bitcoin Blockchain, Here’s The Catch

Tether has announced that it will launch its USDT stablecoin on the Bitcoin blockchain using the RGB protocol.

It will be the first time USDT is available directly on Bitcoin. And that allows people to send stablecoin transactions on the network.

Tether Expands USDT to Bitcoin

In its official statement, Tether said that USDT would now be available on RGB, a protocol designed for issuing digital assets on Bitcoin.

It is worth mentioning that RGB had recently gone live with its 0.11.1 release. The protocol was built to make Bitcoin more than a store of value.

Supporting private, scalable, and user-controlled asset issuance would prove its utility beyond that.

By using RGB, Tether explained that USDT transactions could take place directly on Bitcoin without depending on other blockchains.

As detailed, this meant users could hold Bitcoin and USDT in the same wallet and send either asset without relying on exchanges.

Transactions could also be done offline, combining Bitcoin’s security with the stablecoin’s price stability.

Before this development, Tether had only issued USDT on blockchains such as Ethereum, Solana, Tron, and TON.

Investors who wanted to buy Bitcoin with USDT had to move the stablecoin on one of those networks and then trade on centralized or decentralized exchanges.

It is important to add that with the new launch, that extra step would no longer be required.

The company said that bringing USDT to Bitcoin could open new possibilities for payments and transfers.

It could also simplify the process for users who wanted to keep both Bitcoin and stablecoins within one system.

Tether CEO Outlines the Move

Tether’s Chief Executive Officer, Paolo Ardoino, said that Bitcoin deserved a stablecoin that was native, lightweight, private, and scalable.

He explained that the integration with RGB provided USDT with a new pathway to Bitcoin.

According to him, the move showed Tether’s belief in Bitcoin as the base of a financial system built on open access.

The announcement confirmed Tether’s strategy to expand its stablecoin across networks while maintaining a focus on Bitcoin.

By adding support for the original cryptocurrency, Tether positioned itself to serve users who preferred to operate directly on Bitcoin without depending on other chains.

Tether added that the launch supported its aim to make stablecoins more widely used for daily transactions.

With the Bitcoin network seen as the most secure and decentralized, the company expected users to view the move as an important step toward stablecoin adoption on a global scale.

Tether’s Market Standing

It is worth noting that the launch of USDT on Bitcoin could affect capital flows into the cryptocurrency market.

Market participants mentioned that direct stablecoin support on the largest digital asset, Bitcoin, might encourage more investors to move funds into the network.

Some believe that it could also make it easier to buy and hold Bitcoin, adding a new layer of utility for stablecoins.

Tether remained the largest stablecoin issuer with a market capitalization of $167 billion.

In addition, the company also reported holding 77,780 BTC on its balance sheet in its second-quarter filing.

Notably, it holds a majority stake in Twenty One Capital, which planned to go public with 43,514 BTC. This makes it one of the largest public holders of Bitcoin.

It is important to state that by launching USDT on Bitcoin, Tether added to its record of expanding across multiple chains.

Yet they still keep a strong link to the cryptocurrency itself.  The company described the move as an important step in building stablecoins directly into Bitcoin’s ecosystem.