Tether to Introduce USDT on RGB Network for Bitcoin Integration
In a significant move, Tether, the world's largest digital asset company, has announced the deployment of its USDT stablecoin on RGB, a next-generation protocol for issuing digital assets directly on Bitcoin. This development, marked by the 0.11.1 release of RGB on mainnet, is set to reshape how stablecoins interact with Bitcoin, presenting Bitcoin as more than just a store of value.
With this integration, USDT will be able to operate directly on Bitcoin's infrastructure, allowing users to hold and transfer both Bitcoin and stablecoins within the same wallet. This combination of Bitcoin's decentralization and Tether's price stability is being presented as a significant advancement toward making stablecoins a native part of the Bitcoin network.
Tether's strategy of increasing stablecoin adoption across multiple blockchain ecosystems is reflected in this expansion. The integration aims to align scalability, privacy, and interoperability, advancing Tether's vision of a future where Bitcoin serves as the foundation for global digital payments.
The arrangement also includes a strategic investment by Tether, who has acquired a minority stake in Bit2Me, a Spanish crypto platform. This investment is part of a €30 million (approximately $35 million) funding round led by Tether to support Bit2Me's growth across Europe and Latin America.
Through this integration, USDT will enable advanced features such as offline transactions, enhancing flexibility and resilience in payment environments. The launch is expected to deliver fast, private, and lightweight payments while leveraging Bitcoin's security.
However, the growth in capital moving into stablecoins appears to be cooling down. Recent data from CryptoQuant indicates that while stablecoin liquidity continues to expand, the pace of growth has slowed significantly. Weekly increases in stablecoin market capitalization now stand at around $1.1 billion, compared with the $4-8 billion weekly inflows recorded in late 2024.
Despite this, Tether's USDT remains dominant in the stablecoin sector. However, its 60-day growth has moderated, with inflows holding near $10 billion compared to peaks above $21 billion earlier in the market cycle.
The integration of USDT on RGB is Tether's attempt to reshape how stablecoins interact with Bitcoin, presenting Bitcoin as more than just a store of value. By leveraging client-side validation and Bitcoin as a commitment layer, this move aims to minimise blockchain overload, preserve privacy, and enable Lightning compatibility, unlocking new possibilities for stable digital money within the Bitcoin ecosystem.
The deal between Tether and Bit2Me is expected to close in the coming weeks, marking another step forward in Tether's mission to increase stablecoin adoption and transform the way digital assets are used on the Bitcoin network.
