Tether to bring native stablecoin rail to Bitcoin with USDT rollout on RGB

The Block

Aug 28, 2025 21:49:51

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Tether plans to roll out its USDT token on RGB, a smart-contract and asset-issuance protocol anchored to Bitcoin that’s compatible with the Lightning Network, expanding native stablecoin support on the world’s largest blockchain, according to a Thursday announcement.

RGB lets issuers mint and move assets that are cryptographically committed to Bitcoin transactions but validated offchain between counterparties, reducing onchain footprint while inheriting Bitcoin’s security guarantees.

In practice, this design can enable near-instant settlement over Lightning and improve confidentiality compared to legacy Bitcoin token systems, such as Omni, which embed more data onchain and become costly in high-fee environments.

Tether said the integration is designed to make USDT transfers on Bitcoin faster, cheaper, and more private by using RGB’s client-side validation model instead of storing bulky token data directly onchain.

The move marks Tether’s latest effort to diversify the networks that carry USDT. It also follows its decision earlier this year to phase out support for less-scalable chains like Omni, EOS, and Algorand by September to prioritize high-demand ecosystems.

While most circulation today sits on Tron and Ethereum, adding RGB opens a Bitcoin-native path for stablecoin payments and remittances that can plug into Lightning-enabled wallets, merchant tools, and exchanges. USDT is the largest stablecoin in the cryptocurrency market, with a circulating supply of over $167 billion, according to The Block's data dashboard.

The company has also been deepening its Bitcoin footprint through infrastructure investments and initiatives tied to the broader ecosystem. As of the second quarter of 2025, Tether holds over 100,000 BTC and has invested over $2 billion in 15 mining facilities across Latin America. The firm plans to become the biggest BTC miner by the end of 2025, CEO Paolo Ardoino told The Block in June.

Tether’s USDT expansion to bitcoin also coincides with a broader strategic shift into regulated markets and new distribution channels. Earlier this summer, the firm took a stake in Spanish exchange Bit2Me to establish a European beachhead.

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