Tether 167 billion USD USDT lands on Bitcoin! RGB protocol opens a new era of stablecoin payments.

The world's largest stablecoin issuer, Tether, announced that its USDT, with a market capitalization of up to 167 billion USD, will be natively issued on the Bitcoin (BTC) network for the first time through the RGB protocol. This marks not only the first direct deployment of USDT on the Bitcoin Mainnet but also an important step towards "Programmability" in the Bitcoin ecosystem.

This move means that in the future, users can hold both BTC and USDT in the same wallet and make near-instant, privacy-protected stablecoin payments through the Lightning Network, which will fundamentally change the application scenarios of Bitcoin.

Why choose Bitcoin native issuance for USDT?

Tether CEO Paolo Ardoino stated that Bitcoin deserves a "truly native, lightweight, private, and scalable" stablecoin, and the RGB protocol is key to realizing this vision.

In the past, stablecoins interacted with Bitcoin mainly through sidechains (like Liquid) or cross-chain wrapped assets, but this time USDT will be issued directly on the Bitcoin Mainnet, avoiding additional trust costs and technical dependencies.

For Tether, this is not just a technological innovation, but also a significant bet on the potential of Bitcoin as the global financial backbone.

RGB protocol: A disruptive expansion of Bitcoin capabilities

RGB is an asset issuance protocol that operates on top of Bitcoin and the Lightning Network. Its core feature is to anchor transaction proofs to Bitcoin transactions while storing specific data on user devices.

This design brings three major advantages:

1. Reduce on-chain congestion: Transaction details do not directly occupy block space.

2. Enhanced Privacy: Asset balances and transaction details are visible only to the user.

3. Lightning-fast payments: Instant settlement can be achieved through lightning channels.

The RGB Association points out that the protocol transforms Bitcoin from merely a "store of value" into a multifunctional platform that supports stablecoins, tokenized assets, and programmable contracts, all without altering Bitcoin's consensus rules.

Potential Impact on Bitcoin and USDT Ecosystem

USDT landing on the Bitcoin Mainnet may bring the following far-reaching impacts:

Payment Experience Upgrade: Users can hold both BTC and USDT in the same wallet and make privacy-protected stablecoin payments.

Business Application Expansion: Merchants can directly receive USDT through the Bitcoin network, reducing exchange rate volatility risk.

Cross-chain interoperability: Early demonstrations show that USDT can be instantly bridged from Ethereum (ETH) to RGB, and in the future, it may support liquidity transfers between more public chains.

The Role of Bitcoin Transformation: Evolving from a pure store of value asset to a foundational layer for everyday payments and decentralized finance (DeFi).

Why is this a critical moment for crypto payments?

Currently, Tether dominates the global stablecoin market, especially in small retail payments and is widely used in emerging markets.

Deploying USDT natively on Bitcoin is not only a technical breakthrough but could also serve as a catalyst for pushing Bitcoin into the mainstream payment space.

If wallet developers and merchants quickly adopt this solution, the trading volume of stablecoins on Bitcoin may see exponential growth in the coming months and become a core component of Bitcoin's financial infrastructure.

Conclusion

Tether brings USDT to the Bitcoin Mainnet, combining the privacy and programmability of the RGB protocol, opening a new chapter for global crypto payments. This could not only change Bitcoin's market positioning but also pave the way for stablecoin's cross-chain applications and everyday payments. In the coming months, whether this initiative can trigger a revolution in Bitcoin payments is worth the market's continued attention. For more real-time market data and in-depth analysis, please follow Gate's official platform.