Tether Plans to Introduce USDT on Bitcoin Using RGB and Lightning Technology
Tether, the company behind the largest stablecoin, USDT, has announced a significant change in strategy. By September 2025, the company plans to cut off smaller or less popular networks, such as Omni, EOS, and Algorand, and instead, focus on expanding USDT's presence on the Bitcoin blockchain.
This new focus on Bitcoin is facilitated by the implementation of RGB, a smart-contract and asset-issuance protocol that works with the Lightning Network. RGB allows issuers to create and move assets linked to Bitcoin transactions off-chain, reducing the space on the blockchain and improving efficiency.
The Bitcoin-native USDT option with RGB is a departure from the older systems like Omni, which stored more information directly on Bitcoin. With RGB, USDT will be a direct Bitcoin-native option, allowing for transfers within Lightning wallets and direct trading on Bitcoin's network. This new design is an upgrade, as it avoids the slowness and expense that occurred with Omni when Bitcoin fees increased.
Tether's goal with RGB is to make USDT transfers on Bitcoin quick, affordable, and more private. By using client-side validation, where users check transactions themselves, the system reduces the details on the blockchain, further enhancing its efficiency.
The expansion of USDT on Bitcoin through RGB is part of Tether's broader strategy to bring the large USDT supply into the Bitcoin ecosystem. As of now, USDT has a total supply of over $167 billion, according to CoinMarketCap.
Tether's commitment to Bitcoin is evident in its substantial investments. The company owns over 100,000 BTC as of the second quarter of 2025, and has spent over $2 billion on 15 mining centers in Latin America.
In a statement, Tether CEO Paolo Ardoino emphasised the potential of RGB, stating that it provides USDT with a powerful new pathway on Bitcoin, reinforcing Bitcoin as the foundation of a freer financial future.
This shift in strategy by Tether is expected to have a significant impact on the Bitcoin ecosystem, as USDT becomes more integrated into the network, offering faster, cheaper, and more private transactions.
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