Tether brings USDT back to Bitcoin via RGB protocol

Tether, the issuer of the world’s largest stablecoin, is planning a native issuance of USDT on the Bitcoin network. This will take place via the RGB protocol version 0.11.1, with software company UTEXO leading the commercial rollout. It is a notable move, as USDT is thus returning to the blockchain where it was first launched in 2014, at that time via the Omni Mastercoin layer.

UTEXO takes on the commercial rollout

UTEXO positions itself as the issuer and distributor of this Bitcoin-native version of USDT, in cooperation with Tether. The company thus plays a central role in making the stablecoin available to users active on the Bitcoin network. According to Bitcoin Magazine, the feature could go live as early as July.

Once the rollout begins, users will be able to send and receive USDT via ordinary Bitcoin addresses and compatible wallets. Tether Wallet and several exchanges are expected to add support later. The RGB protocol makes this possible by processing smart contracts outside the Bitcoin blockchain itself, enabling more efficient and privacy-friendly transactions.

Return to USDT’s roots

At the time of writing, the Bitcoin price stands at $63.286, an increase of 0.7% over the past 24 hours. The return of USDT to Bitcoin via a modern protocol such as RGB is therefore notably well-timed, especially as the future of stablecoins on decentralised networks is being widely examined. Earlier we reported on the declining stablecoin market capitalisation of recent months.

The RGB protocol offers an interesting approach: instead of registering USDT directly on the Bitcoin blockchain, settlement takes place via a layer on top of the network. This also makes it possible to settle via the Lightning Network, resulting in faster and cheaper transactions. Tether is thus not only returning to its origins, but doing so with more modern technology than was available at its launch in 2014.