Bitcoin News Today: Tether’s Bitcoin Bet: A New Era for Stablecoin Speed and Privacy

Tether, the largest stablecoin issuer globally, has announced significant changes in its blockchain strategy, including the removal of USDT from several legacy blockchains and a new integration with Bitcoin through the RGB protocol. The shift reflects Tether’s ongoing efforts to optimize the efficiency, security, and adoption of USDT, aligning with broader industry trends toward faster and cheaper payment rails.

Tether has scrapped plans to freeze USDT smart contracts on five blockchains—Omni Layer, Bitcoin Cash SLP, Kusama, EOS, and Algorand—following community feedback [2]. While users will still be able to transfer existing tokens on these chains, Tether will no longer issue or redeem USDT on them. This decision is part of a broader strategy to focus on blockchains with strong developer activity, scalability, and user demand. The move effectively sunsets USDT on chains that have struggled to maintain significant adoption and transaction volumes [2]. Tether had previously announced plans to end USDT issuance on these chains in 2023 and 2024, and the revised approach now allows for a smoother transition.

At the same time, Tether is expanding its footprint on the Bitcoin network by launching USDT on RGB, a Bitcoin-anchored protocol that enables fast and private stablecoin transfers [4]. RGB operates using client-side validation and is compatible with the Lightning Network, offering users near-instant settlement times and reduced on-chain costs. This integration marks a significant step in bringing stablecoin functionality to Bitcoin, leveraging the security of the largest blockchain while improving the usability of stablecoin transactions. Tether has been deepening its Bitcoin-related investments, including over $2 billion in mining facilities and plans to become the largest BTC miner by the end of 2025 [4].

Tron, the blockchain with the largest USDT circulation, continues to dominate stablecoin transactions with over $80 billion in USDT in Q2 2025 [3]. The Tron network processes more than $23 billion in daily USDT transfers, overtaking Ethereum in volume. This dominance is attributed to Tron’s low fees, fast settlement times, and exchange defaults that favor TRC-20 USDT. While Ethereum remains a leader in decentralized finance (DeFi) and NFTs, it has seen a decline in stablecoin-related activity. Tron’s 27-validator structure, however, raises centralization concerns compared to Ethereum’s thousands of validators, which enhance network security at the cost of speed and affordability [3].

The expansion of stablecoin use is also being propelled by regulatory developments, particularly the U.S. GENIUS Act, which establishes a framework for stablecoin regulation [6]. The law mandates that stablecoins be backed 1:1 by cash or short-term U.S. Treasuries and prohibits the marketing of stablecoins as federally backed. This legislation is expected to increase consumer and institutional confidence in stablecoins by ensuring transparency and stability. Analysts suggest that the law could lead to the widespread adoption of stablecoins in everyday transactions, including retail payments and international remittances. The GENIUS Act also opens the door for broader financial institution participation, with major banks like JPMorgan and Citigroup reportedly exploring the possibility of issuing stablecoins [6].

Stablecoins are increasingly being viewed as a more efficient alternative to traditional payment methods, particularly for international transfers and micro-payments [6]. Credit card processing fees can exceed 3% per transaction, whereas stablecoin transfers typically cost less than $0.10, offering near-instant settlement. This cost efficiency is especially beneficial for cross-border payments, where traditional methods can be slow and expensive. The World Bank estimates that international remittances cost an average of 6.62% of the transfer amount, but stablecoin transactions could reduce this significantly. Furthermore, the GENIUS Act’s prohibition on yield creation for stablecoins shifts the focus from investment products to utility-based payment instruments, emphasizing speed, cost, and reliability over interest generation [7].

As the stablecoin market continues to evolve, Tether’s strategic moves—whether through blockchain integration, regulatory compliance, or ecosystem expansion—highlight the growing role of stablecoins in global finance. The combination of faster networks, clearer regulations, and practical use cases positions stablecoins as a transformative force in the payments industry, with the potential to reshape how individuals and institutions move value across borders and platforms [6].

Source:

[1] Buy Tether USD (USDT) with a Credit or Debit Card Instantly (https://changehero.io/buy/usdt)

[2] Tether scraps plan to freeze USDT on five blockchains (https://cointelegraph.com/news/tether-drops-plan-to-end-usdt-on-five-chains)

[3] Tron Didn’t Replace Ethereum—But It Took $80B in USDT (https://www.ccn.com/education/crypto/tron-vs-ethereum-usdt-dominance-explained/)

[4] Tether to bring native stablecoin rail to Bitcoin with USDT rollout on RGB (https://www.theblock.co/post/368613/tether-to-bring-native-stablecoin-rail-to-bitcoin-with-usdt-rollout-on-rgb)

[5] Exclusive: Trump's Bitcoin Reserve, Wall Street ETFs, and Genius Act stablecoin push explained by expert (https://coinpedia.org/news/exclusive-trumps-bitcoin-reserve-wall-street-etfs-and-genius-act-stablecoin-push-explained-by-expert/)

[6] Why you might one day use stablecoins in place of credit cards (https://finance.yahoo.com/personal-finance/banking/article/what-is-a-stablecoin-190957368.html)

[7] Why Stablecoins Win Without Yield (https://www.finextra.com/blogposting/29241/why-stablecoins-win-without-yield)