Stablecoin issuer Tether has announced plans to onboard USDT on RGB, a decentralized protocol for issuing assets on the Bitcoin blockchain. This announcement comes on the heels of the platform’s launch, which aims to expand the Bitcoin network beyond a store of value and open the door to stablecoins on the platform. Although a section of the community wanted Bitcoin to stick to its traditional approach, many point to the benefits for crypto users.
In a recent press release, the company noted that the move will allow USDT to be converted on the world’s most secure network, onboarding faster transfers in cross-border payments. RGB recently launched its mainnet with a new release, drawing the attention of the wider cryptocurrency community.
Users can now deploy Bitcoin and USDT in the same wallet alongside private offline transactions. A major driver of Tether’s plans is the stability of stablecoin issuers, coupled with the security of Bitcoin. Blockchain security has been a significant topic of discussion in recent months, with several hacks and bridge exploits resulting in millions of dollars in losses.
“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.”
Another catalyst is the size of the Bitcoin network, which has added trillions in value as institutional investors gain more exposure. Tether aims to capitalize on the momentum as large investors dominate the market while expanding its stablecoin market share. Bitcoin moved slightly above $112,000 this week, while the stablecoin market cap reached a new record of over $295 billion.
Data from DeFiLlama shows that USDT’s dominance is over 59.7%, with a market cap of $167 billion. Meanwhile, Circle’s USDC and Ethena USDe rank next with a $69.1 billion $12.2 billion market capitalization, respectively.
Stablecoins hit a new all-time high as the global financial markets brace up for major rollouts. This year, major traditional firms have begun exploring stablecoins to boost cross-border settlements. Firms like Stripe have tapped major banks in the United States to consider options. Uber and retail chains have also revealed plans to cut centralized costs.
Away from dollar-based assets, China is also exploring yuan-based assets to support its economy and promote the use of its currency. Firms like JD and Ant International have backed such moves, urging the government to roll out effective regulations.
