news.bitcoin.com
The stablecoin issuer Tether announced plans Thursday to launch its $USDT stablecoin on the RGB protocol, expanding native stablecoin support on Bitcoin.
Tether Brings $USDT to RGB, Enhancing Bitcoin’s Capabilities
RGB is dubbed a next-generation protocol for issuing digital assets and smart contracts on Bitcoin and the Lightning Network. It operates primarily off-chain using a client-side validation model, which enhances privacy and scalability without altering Bitcoin’s core protocol or congesting its blockchain. The protocol enables the private and user-controlled issuance of tokens.
By launching on RGB, Tether’s release notes that $USDT will be transacted directly on Bitcoin’s base layer, leveraging its security and decentralization. Tether says this integration will allow users to hold and transfer $USDT within the same wallet as their bitcoin (BTC), facilitating fast, private, and lightweight payments.
“ Bitcoin deserves a stablecoin that feels truly native, lightweight, private, and scalable,” Paolo Ardoino, the CEO of Tether, remarked on Wednesday. “With RGB, $USDT gains a powerful new pathway on Bitcoin, reinforcing our belief in Bitcoin as the foundation of a freer financial future.”
The move enables functionalities like offline transactions and reinforces Bitcoin’s utility beyond a store of value (SoV). It combines the stability of the world’s largest stablecoin with the security of the Bitcoin network.