Bitcoin News Today: Bitcoin Gets a Native Stablecoin—Thanks to Tether and RGB

Tether has announced a strategic partnership with the RGB protocol to deploy its USDT stablecoin natively on the Bitcoin network, marking a significant step in expanding the utility of stablecoins on the world's largest blockchain. According to Tether's press release, the integration will allow users to transact directly on the Bitcoin network, hold USDT and Bitcoin in the same wallet, and send and receive value offline. This development is expected to enhance the accessibility, privacy, and scalability of stablecoin transactions on Bitcoin [1].

The RGB protocol, which recently launched its v0.11.1 mainnet release, enables the issuance of digital assets on Bitcoin using client-side validation and off-chain asset data, reducing on-chain congestion and improving privacy. This means that for the first time, USDT will be a fully native asset on Bitcoin, rather than a wrapped token or secondary chain asset. The RGB integration is intended to make stablecoin transactions on Bitcoin as seamless and sovereign as Bitcoin itself [2].

Tether’s CEO, Paolo Ardoino, emphasized the importance of the partnership, stating that "Bitcoin deserves a stablecoin that feels truly native, lightweight, private, and scalable." The collaboration is expected to unlock deeper integrations with the Lightning Network, a second-layer solution for Bitcoin transactions. These integrations will include the ability to leverage Lightning's privacy features, client-side validation, and instant settlements via RGB’s built-in transport extension [1].

The integration of USDT with the Bitcoin network via RGB comes at a time of strong growth for Tether. As of the time of the announcement, USDT had a market capitalization of $167.33 billion, making it the largest stablecoin in the world by market cap. Tether's second quarter of 2025 was marked by record-setting net profit margins and new all-time issuance highs. The firm is also expanding its operations, having recently added former U.S. crypto official Bo Hines as a strategic advisor [1].

The move represents a broader trend in the crypto ecosystem, where stablecoin issuers are increasingly seeking to leverage Bitcoin’s decentralized infrastructure to enhance censorship resistance and financial sovereignty. Unlike Ethereum-based stablecoins, which face growing concerns over smart contract vulnerabilities and high gas fees, USDT on RGB offers reduced reliance on third-party chains, lower operational costs, and enhanced user privacy [2].

Tether’s deployment of USDT on Bitcoin via RGB is expected to create new opportunities for daily purchases, cross-border remittances, and financial inclusion in regions with limited access to traditional banking services. By enabling users to transact with stablecoins on the Bitcoin network, Tether is positioning Bitcoin as not only a store of value but also a functional payment system capable of supporting digital contracts and decentralized applications [2].

As the integration progresses, developers, wallet providers, and exchanges are being encouraged to adopt the RGB20 fungible asset token standard to support the next phase of Bitcoin-native stablecoin innovation. With Tether managing over $86 billion in USDT circulation, the adoption of RGB could significantly boost the protocol's uptake and reshape the competitive landscape in the crypto space [2].

Source: [1] USDT Coming to Bitcoin: Tether Partners with RGB Protocol for Native Bitcoin Stablecoin Support (https://finance.yahoo.com/news/usdt-coming-bitcoin-tether-partners-175039968.html) [2] Tether to Launch $86B USD₮ on Bitcoin via RGB Protocol, Unlocking Private Native Stablecoin Payments (https://www.cryptoninjas.net/news/tether-to-launch-86b-usdt-on-bitcoin-via-rgb-protocol-unlocking-private-native-stablecoin-payments/)