Bitcoin News Today: Bitcoin Gets a Wallet Upgrade: USDT Joins BTC Natively via RGB

Tether, the issuer of the largest stablecoin by market capitalization, has announced its plan to deploy USDT on the RGB protocol, enabling native stablecoin issuance on the Bitcoin blockchain. This move allows USDT holders to store and transfer the stablecoin alongside Bitcoin in the same wallet, offering private transactions that do not expose balances or transaction flows on-chain. Tether’s integration with RGB v0.11.1—a protocol launched earlier this year—supports offline transfers, enhancing usability in low-connectivity environments [1].

The RGB Protocol Association has welcomed the partnership, noting that it will unlock deeper integrations between the Lightning Network and the Bitcoin network. These include enabling instant settlements via RGB’s transport extensions and leveraging the Lightning Network’s privacy and client-side validation capabilities. Tether has not disclosed a specific launch date but confirmed that its development teams are collaborating closely with RGB developers to implement the feature “in the near future” [1].

According to the latest data, USDT currently holds a market capitalization of approximately $167.33 billion, making it the largest stablecoin in the world [2]. This recent innovation aligns with Tether’s broader strategic shift, including the addition of former U.S. crypto official Bo Hines as a strategic advisor and ongoing product development initiatives like the QVAC Keyboard. Tether CEO Paolo Ardoino emphasized that “with RGB, USDT gains a powerful new pathway on Bitcoin,” highlighting the protocol’s potential to enable scalable, private, and user-controlled asset transactions [2].

RGB, a smart contract and asset issuance protocol built atop Bitcoin, is designed to support off-chain asset management with on-chain proof anchoring. Unlike traditional methods that require all transactions to be publicly recorded, RGB validates transactions on the user’s device, minimizing chain bloat and enhancing privacy. This client-side validation model ensures that only the involved parties maintain and verify transaction data, while the Bitcoin blockchain serves as a settlement layer [3].

The integration of USDT on RGB marks a shift in the perception of Bitcoin from a mere store of value to a functional payment network. Users will now be able to send and receive USD₮ alongside BTC in the same wallet, supporting a broader range of use cases, including cross-border remittances and daily transactions in high-inflation economies. Experts suggest that this development could strengthen Bitcoin’s role as a global settlement layer and reduce reliance on alternative blockchains for stablecoin issuance [3].

Tether’s move is part of a broader trend in which stablecoin issuers are seeking to leverage Bitcoin’s decentralized infrastructure to improve privacy, reduce operational costs, and enhance user sovereignty. The firm’s support for RGB and its integration with the Lightning Network could further accelerate the adoption of Bitcoin-based stablecoin transactions, particularly in markets with limited access to traditional financial services. As more wallet providers and exchanges adopt the RGB20 standard, the Bitcoin network may evolve into a more versatile and trusted platform for global digital finance [4].

Source: