Bitcoin News Today: Bitcoin Gets a Stablecoin Boost—Thanks to Tether’s RGB Partnership

Tether, the largest stablecoin issuer by market capitalization, has announced plans to bring its USDT stablecoin to the Bitcoin network via the RGB protocol, marking a significant step in the integration of stablecoin functionality with the world's first cryptocurrency. According to a press release on August 28, 2025, the move will allow users to transact directly on the Bitcoin network, hold USDT and Bitcoin in the same wallet, and send and receive value offline [1]. This is achieved through the RGB protocol, a service designed to enable the creation and management of tokenized assets on the Bitcoin blockchain [2].

The partnership with RGB is expected to facilitate deeper integrations between the Lightning Network—a second-layer solution for faster and cheaper Bitcoin transactions—and the broader Bitcoin network. These integrations include the ability to leverage Lightning Network features such as privacy, client-side validation, and instant settlements through RGB’s transport extension [2]. Tether CEO Paolo Ardoino emphasized the need for a "truly native, lightweight, private, and scalable" stablecoin on Bitcoin, reflecting the project’s alignment with Bitcoin’s core values [2].

USDT, currently trading at a market cap of $167.33 billion, continues to dominate the stablecoin market. The token is already supported on 20 different blockchain networks, including Ethereum, TRON, Solana, Polygon, and Avalanche. The expansion into the Bitcoin network through RGB signals a broader trend of cross-chain interoperability and innovation in the stablecoin space [1]. Notably, Tether is also planning to cease USDT support on several lesser-used chains, including Algorand, Bitcoin Cash SLP, EOS, Kusama, and Omni Layer, beginning September 1, 2025 [2].

The announcement coincides with a period of aggressive expansion and innovation for Tether. In Q2 2025, the company reported record-setting net profit margins and increased staffing, including the hiring of Bo Hines, a former U.S. crypto official, as a strategic advisor. Tether is also developing a new product, the “QVAC Keyboard,” an AI-powered device designed to facilitate secure, fast, and anonymous transactions using its QVAC technology [1]. These developments indicate a strategic shift toward enhanced user experience and technological integration.

The RGB protocol, which recently launched version v0.11.1, is a key enabler of tokenized assets and programmable contracts on Bitcoin without compromising the network’s decentralization or security. The RGB Association, formed by industry partners such as Bitfinex, Fulgur Ventures, and others, is tasked with coordinating the project's development and promotion [2]. The association’s formation underscores the growing institutional interest in expanding Bitcoin’s utility beyond peer-to-peer value transfer.

The integration of USDT into the Bitcoin network through RGB has the potential to significantly impact the broader cryptocurrency ecosystem by enhancing the fungibility and usability of Bitcoin. With the ability to transact with stablecoins natively on the Bitcoin network, users may see increased adoption of Bitcoin for everyday transactions, particularly in markets where price volatility remains a concern. This development aligns with broader trends of financial innovation on the Bitcoin network and could further establish Bitcoin as a foundational layer for global financial infrastructure.

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 Introduce USDT on Bitcoin Network (https://forklog.com/en/tether-to-introduce-usdt-on-bitcoin-network/)