Tether has announced that it will launch its stablecoin USDT natively on Bitcoin through the recently launched RGB Protocol.
Tether, which is the largest stablecoin issuer, shared this in its blog post in August, marking a breakthrough for tokenized assets on Bitcoin. USDT would become the first-ever native stablecoin on the Bitcoin network, leveraging RGB technology to enable the trading of the dollar-pegged token.
USDT Comes Natively to Bitcoin
The entire architecture of the Bitcoin blockchain has ensured that tokenized assets do not exist natively on the “most secure and decentralized network.” Nonetheless, RGB aims to address this with its next-generational technology.
Notably, the technology enables users to hold and move Bitcoin and USDT through the same wallet while maintaining their lightweight and confidential nature. The transactions are processed off-chain, allowing users to enjoy the same privacy and decentralization benefits associated with the Bitcoin network.
The Native Smart Contract Functions that Bitcoin Deserves
Reacting to the development, Tether CEO Paolo Ardoino insisted that Bitcoin is finally getting the stablecoin feel that it deserves. He added that USDT would gain a “new pathway with Bitcoin” through the RGB Protocol, reestablishing its long-standing sentiment that the leading cryptocurrency should offer more to users beyond its reputation as a store of value.
Moreover, this is just one of the broader efforts to roll out DeFi for Bitcoin users. Industry leaders have tipped this push to unlock trillions of dollars in liquidity domiciled on the Bitcoin network to other chains, boosting transactional activities and TVL of all involved parties.
Remarkably, Ardoino earlier teased the prospect of USDT’s availability on the Bitcoin network in April, calling it a return to its natural habitat. He confirmed that the stablecoin will launch on the Bitcoin Lightning Network during the interview, powered by Taproot Assets.
Meanwhile, with RGB, users can do more. The protocol also allows users to hold and move non-fungible tokens (NFTs) and custom tokens within the Bitcoin ecosystem.
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