Bitcoin News Today: Bitcoin Gets Its First Native Stablecoin Rail via Tether and RGB

Tether is set to bring its USDT stablecoin to the Bitcoin network via the RGB protocol, a development that could reshape the stablecoin landscape by enabling native, scalable, and private transactions on the world’s largest blockchain. According to Tether’s August 28 press release, the integration with RGB will allow users to send and receive USDT directly within Bitcoin wallets, alongside their BTC holdings, without the need for external infrastructure. The RGB protocol, which recently reached mainnet, offers a framework for issuing digital assets on Bitcoin, leveraging off-chain validation while maintaining the security guarantees of the Bitcoin network [1].

The partnership with RGB is part of Tether’s broader strategy to expand the utility of USDT beyond existing networks like Ethereum and Tron . By leveraging RGB’s compatibility with the Lightning Network, Tether aims to offer users faster, lower-cost, and more private transactions that can function offline. This marks a significant shift in how stablecoins can interact with Bitcoin, which has traditionally been limited in its tokenization capabilities. Tether CEO Paolo Ardoino emphasized that “Bitcoin deserves a stablecoin that is truly native, lightweight, private, and scalable” [5].

The move comes as Tether continues to expand its presence within the Bitcoin ecosystem. The firm has been investing heavily in Bitcoin mining infrastructure, currently operating over 15 mining facilities in Latin America and holding a reserve of more than 100,000 BTC as of the second quarter of 2025 [5]. The firm also announced its intent to become the largest Bitcoin miner by the end of the year. Additionally, Tether has made strategic investments in regulated markets, including a recent stake in the Spanish exchange Bit2Me [5].

USDT’s market dominance remains unchallenged, with a current market capitalization of approximately $167.33 billion as of the latest data [1]. Tether’s expansion into the Bitcoin network through RGB is expected to further solidify the stablecoin’s role in cross-chain and decentralized finance ecosystems. The firm has also begun phasing out support for less scalable blockchains, including Algorand , EOS, and Omni, by September 2025 [6].

The RGB protocol, launched in July 2025, enables users to issue and transfer digital assets on Bitcoin without embedding large amounts of data on the blockchain itself. This approach preserves Bitcoin’s security while reducing on-chain bloat and transaction costs. The RGB network, which is now at version 0.11.1, has attracted a growing consortium of partners, including Bitfinex and Fulgur Ventures, to drive its development and adoption [1].

Tether’s decision to integrate USDT with RGB aligns with broader trends in the crypto market, where stablecoins are increasingly being used as a bridge between traditional and digital asset ecosystems. While the firm has not provided a specific timeline for the rollout of USDT on RGB, early signals suggest that the integration will soon unlock deeper connections between the Lightning Network and the Bitcoin blockchain. This could pave the way for more sophisticated use cases, including instant settlements and enhanced privacy for stablecoin users [1].

The launch of USDT on the Bitcoin network via RGB is a significant milestone for both Tether and the broader crypto industry, demonstrating the growing maturity of Bitcoin as a platform for financial innovation. As stablecoin issuance continues to evolve, the integration of USDT into Bitcoin’s infrastructure highlights the ongoing convergence of scalability, privacy, and security in decentralized systems [5].