Tether Prepares to Issue USDT Natively on Bitcoin Based on RGB Protocol
Tether is preparing to issue USDT natively on the Bitcoin network based on the RGB v0.11.1 protocol, with commercialization and distribution handled by UTEXO. This marks USDT's return to the Bitcoin main chain since its issuance via the Omni protocol in 2014.
Viktor Ihnatiuk, co-founder of UTEXO, stated that the company has received support from Tether. The RGB protocol combines client-side validation with the Lightning Network, achieving instant, low-cost, and private transactions for USDT while inheriting the security model of Bitcoin's UTXO.
Users can hold USDT directly through native Bitcoin addresses and complete transactions using Lightning Network wallets that support RGB, without relying on other public chains or intermediaries. Compared to account models like TRON and Ethereum, RGB utilizes UTXO to support one-time addresses and enhance privacy while reducing intermediary costs.
Source: Public Information
ABAB AI Insight
Tether's return to the Bitcoin main chain using the RGB protocol, after previously moving to high-performance public chains like Ethereum and TRON since the issuance of USDT via the Omni protocol in 2014, signifies a renewed emphasis on Bitcoin's underlying security and native integration in its multi-chain strategy, with UTEXO as the commercial partner responsible for execution.
On the capital front, Tether aims to lower issuance and circulation costs through RGB and the Lightning Network while enhancing privacy to attract institutional and privacy-sensitive users. The strategic motive is to solidify USDT's position as the core stablecoin in the Bitcoin ecosystem and facilitate efficient cross-chain capital flow, expanding the overall asset management scale.
This initiative is akin to previous attempts to expand stable assets on Bitcoin, such as Liquid Network or Stacks, or Tether's own reverse migration from Omni to multi-chain. Currently, the Bitcoin Layer 2 and RGB ecosystem are on the brink of an explosion in native asset issuance.
Essentially, this represents a restructuring of the industry chain: the RGB protocol combines Bitcoin's UTXO model with modern stablecoin demands, prompting capital to migrate from high Gas fee account model chains to Bitcoin's native privacy-efficient pathways, further reinforcing Bitcoin's status as a foundational layer for value storage and settlement.
ABAB News · Cognitive Law
Returning to underlying security is often the long-term optimal solution for mature stablecoins.
UTXO + client-side validation reconstructs the stablecoin circulation paradigm in terms of privacy and cost.
In a multi-chain layout, native integration with Bitcoin will become a new competitive barrier.