Tether to Launch Stablecoin on Bitcoin via RGB Protocol
Tether, issuer of the world’s most widely used stablecoin, said Thursday it plans to launch USD₮ on RGB, a protocol for issuing digital assets on the Bitcoin blockchain. The move marks one of the first major efforts to bring a large stablecoin directly onto Bitcoin’s network, which has traditionally functioned primarily as a store of value. RGB, which released its mainnet version 0.11.1 earlier this year, is designed to support private and scalable asset issuance on Bitcoin. Stablecoin Integration on RGB According to the company, integrating USD₮ with RGB will allow users to transact the stablecoin natively on Bitcoin while maintaining privacy and efficiency. The system is intended to enable users to store and transfer USD₮ in the same wallets as their Bitcoin holdings. The protocol also supports offline transactions, meaning users could exchange value without requiring constant internet connectivity. Tether said this capability could expand stablecoin access to people in areas with limited infrastructure. By using RGB, the company noted, transactions would remain lightweight and user-controlled, avoiding reliance on third-party intermediaries. Broader implications for Bitcoins Paolo Ardoino, Tether’s chief executive, said the expansion reflects the firm’s view that Bitcoin should serve as more than a reserve asset. He described the RGB integration as an opportunity for stablecoins to operate “natively” on the network. The announcement comes amid broader industry efforts to expand Bitcoin’s functionality beyond simple transfers of value. Developers have explored multiple protocols, such as the Lightning Network, to make Bitcoin transactions faster and more scalable. RGB adds another layer by enabling different types of digital assets, including stablecoins, to be issued and transferred on Bitcoin itself. Analysts say the integration could reshape how stablecoins interact with the cryptocurrency ecosystem. Instead of depending on other blockchains like Ethereum, Tron or Solana—where most USD₮ currently circulates—Bitcoin may increasingly become a direct host for stable-value digital money. Tether has not announced a launch date for USD₮ on RGB but said development is ongoing. The company framed the expansion as part of its efforts to increase the options available to its global user base. Industry Impacts Stablecoins have grown into a multibillion-dollar sector, serving as a bridge between traditional currencies and cryptocurrencies. USD₮, first issued in 2014, accounts for the majority of stablecoin trading volume worldwide. The decision to expand onto Bitcoin highlights ongoing competition among blockchain platforms to capture stablecoin adoption. While Ethereum has historically been the largest host, other chains have attracted significant usage because of lower costs and faster settlement. Bringing USD₮ to Bitcoin could add to its role in the broader financial system, linking the network’s security and decentralization with the liquidity of the most widely used stablecoin.