Tether, the firm behind USDT, the biggest stablecoin, has announced plans to launch the token on Bitcoin using RGB, a smart-contract and asset-issuance protocol that works with the Lightning Network.
According to the press release, RGB allows issuers to create and move assets that are linked to Bitcoin transactions but verified off-chain, which means they do not take up much space on the blockchain itself.
Design for Faster, Cheaper, and Private Transactions
This new design is an upgrade compared to older systems like Omni, which stored more information directly on Bitcoin. Because Omni used the blockchain for storing token data, it became slow and expensive whenever fees on Bitcoin went up. RGB avoids that by keeping data off-chain and letting users confirm it privately.
Tether said its goal with RGB is to make USDT transfers on Bitcoin quick and affordable, while keeping it more private. The system uses client-side validation, where the users check the transactions themselves instead of putting all the details onto the blockchain.
Meanwhile, tether made the move after it decided to cut off some smaller or less popular networks. Earlier this year, the company said it would stop using Omni, EOS, and Algorand by September 2025. These networks were not growing much, and Tether wanted to focus on blockchains with more users and higher demand.
Today, most USDT runs on Tron and Ethereum, but the company says adding RGB creates a direct Bitcoin-native option. This means people will be able to send and receive USDT inside Lightning wallets, and trade it on exchanges directly through Bitcoin’s network.
Tether to Expand Bitcoin Footprint
According to data from CoinMarketCap, USDT has a total supply of more than $167 billion. This makes it the largest stablecoin in the world. With RGB, Tether hopes to bring that large supply into the Bitcoin ecosystem.
“Bitcoin deserves a stablecoin that feels truly native, lightweight, private, and scalable. With RGB, USD₮ gains a powerful new pathway on Bitcoin, reinforcing our belief in Bitcoin as the foundation of a freer financial future.” Tether’s CEO Paolo Ardoino said in the press release.
At the same time, Tether has been investing heavily in Bitcoin. As of the second quarter of 2025, the company owned over 100,000 BTC and spent more than $2 billion on 15 mining centers in Latin America.
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