James Richardson
Tether is bringing its USDT stablecoin to the Bitcoin ecosystem through the RGB protocol, a cutting-edge smart contract and asset issuance layer built on Bitcoin and compatible with the Lightning Network. This move, announced Thursday, enhances stablecoin functionality directly on the worldโs largest blockchain.
RGB allows developers and issuers to create and transfer digital assets anchored to Bitcoin transactions but validated off-chain. This approach minimizes blockchain congestion while still leveraging Bitcoinโs robust security.
By using client-side validation, RGB can achieve faster, cheaper, and more private settlements compared to older systems like Omni, which embed large amounts of data on-chain and become costly in high-fee environments.
Faster, Cheaper, and More Private USDT on Bitcoin
Tether explained that the integration will make USDT transactions on Bitcoin nearly instant when routed through the Lightning Network. Users will benefit from lower transaction costs and improved privacy since sensitive token data wonโt be stored directly on the blockchain.
Tether Diversifies Beyond Tron and Ethereum
Most of USDTโs $167 billion circulating supply currently resides on Tron and Ethereum, but the company has been actively diversifying. This year, Tether began phasing out support for chains with lower adoption, such as Omni, EOS, and Algorand, to prioritize high-demand ecosystems.
By launching on RGB, Tether is creating a Bitcoin-native pathway for remittances, merchant payments, and exchange integration across Lightning-enabled wallets.
Tetherโs Expanding Bitcoin Strategy
The RGB expansion aligns with Tetherโs broader commitment to Bitcoin. As of Q2 2025, the company holds over 100,000 BTC and has invested $2 billion in mining facilities across Latin America. CEO Paolo Ardoino revealed that Tether aims to become the worldโs largest Bitcoin miner by the end of 2025.
A Strategic Push Into Regulated Markets
Alongside its Bitcoin initiatives, Tether is entering regulated markets and new distribution channels. Earlier this summer, the company acquired a stake in Spanish crypto exchange Bit2Me to strengthen its presence in Europe.
