Tether Brings USDT Stablecoin to Bitcoin via RGB

Tether will launch USDT on Bitcoin’s RGB protocol, enabling native, private, and scalable stablecoin transactions on the world’s first blockchain.

Tether, the issuer of the world’s largest stablecoin USDT, is extending its reach to Bitcoin’s blockchain through the RGB protocol — a newly deployed system designed to allow advanced asset issuance and private transactions directly on Bitcoin. The move positions Bitcoin not just as a store of value but as a foundation for scalable digital payments, merging the security of the network with the liquidity of stablecoins.

Tether to Launch USD₮ on RGB, Expanding Native Bitcoin Stablecoin Supporthttps://t.co/pige2t9Cc3
— Tether (@Tether_to) August 28, 2025

USDT to Run Natively on Bitcoin

RGB, which recently went live with its 0.11.1 mainnet release, enables the creation and transfer of digital assets on Bitcoin while prioritizing scalability, privacy, and user control. For Tether, this means USDT will now be able to operate directly within Bitcoin’s infrastructure, rather than relying solely on secondary chains like Ethereum, Tron, or Solana.

In a blog post, Tether explained that users will soon be able to hold and transfer USDT alongside their Bitcoin in the same wallet. The architecture also supports offline transactions, opening up new possibilities for payments in areas with unreliable connectivity.

“Bitcoin deserves a stablecoin that feels truly native, lightweight, private, and scalable,” said Paolo Ardoino, CEO of Tether. “With RGB, USDT gains a powerful new pathway on Bitcoin, reinforcing our belief in Bitcoin as the foundation of a freer financial future.”

By integrating with RGB, Tether is highlighting its long-term vision of building a financial system where Bitcoin remains central while stablecoins provide a reliable medium of exchange.

Why RGB Matters

RGB is often described as a next-generation smart contract layer for Bitcoin. Unlike Ethereum’s on-chain smart contracts, RGB leverages client-side validation and advanced cryptography, which allows it to achieve high scalability while maintaining Bitcoin’s decentralization and security.

Key features include:

Native stablecoin issuance on Bitcoin
Privacy-preserving transactions that shield user data
Scalability with minimal blockchain bloat
Offline transfer capabilities for resilient payment scenarios

For billions of people who already view Bitcoin as digital gold, this evolution could bring it closer to functioning as everyday money, supported by the stability of USDT.

Stablecoins: A Growing but Cooling Market

Tether’s expansion comes as the broader stablecoin market continues to expand but at a slower pace than in 2024. According to CryptoQuant data, weekly stablecoin market cap inflows now average around $1.1 billion, far below the $4–8 billion weekly inflows seen during Bitcoin’s late-2024 rally.

Tether’s USDT remains dominant, but its 60-day net growth has slowed to about $10 billion, compared with peaks above $21 billion earlier in the cycle. While inflows are still positive, the data suggests a cooling trend in market liquidity.

At the same time, the total stablecoin market has surged from just $4 billion in 2020 to more than $280 billion today, with monthly settlement volumes hitting $1.39 trillion in the first half of 2025.

Stablecoins as a New Financial Backbone

A recent report by Keyrock and Bitso projects that stablecoins could reach $1 trillion in annual payment volume by 2030, representing about 10% of the U.S. money supply. The study argues that stablecoins could hold 25% of the U.S. Treasury bill market with a total supply of $2 trillion, reshaping both payments and monetary policy.

According to the findings, stablecoins already offer clear advantages over traditional banking and remittance systems: up to 13x cheaper payments compared with banks, settlement in seconds instead of days, and reduced reliance on intermediaries.

The report characterizes stablecoins as a “new financial operating system” capable of transforming how value moves across borders and within domestic markets.

Bitcoin Meets Stable Payments

By enabling USDT to exist natively on Bitcoin, Tether is merging the world’s most secure blockchain with the most widely used stablecoin. This convergence could strengthen Bitcoin’s role in global finance, not just as an investment asset but also as a medium of exchange for everyday transactions.

The move also underscores a broader trend: while the explosive growth of stablecoins has slowed from its 2024 highs, their long-term trajectory remains upward, with adoption expected to reshape payments, monetary policy, and global finance in the coming decade.

In combining Bitcoin’s resilience with Tether’s liquidity, the RGB integration marks an important step toward a financial system that is more private, scalable, and accessible worldwide.