Tether is expanding USDT to Bitcoin via the RGB protocol, promising faster stablecoin transactions but sparking debate over what counts as “native.”
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Posted August 29, 2025 at 10:02 am EST.
Tether plans to launch its stablecoin USDT on Bitcoin using the RGB protocol, which will enable stablecoin transactions “natively” on Bitcoin.
The integration is designed to allow users to hold and transact both Bitcoin and Tether USDT from the same wallet, potentially using Lightning Network features for fast, affordable transactions.
RGB is an open-source protocol that enables asset issuance directly on Bitcoin without modifying Bitcoin’s core protocol. It supports “client-side validated” smart contracts that use Bitcoin’s consensus only for settlement, keeping state transitions private and off-chain.
USDT/BTC remains one of the most liquid, widely used trading pairs in the crypto ecosystem. Tether claims that native integration of USDT on Bitcoin would open new possibilities for stable, dollar-denominated payments secured by the Bitcoin network.
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However, X user Grim suggested that Tether’s claim of native USDT on Bitcoin was “false and misleading” because RGB is not a true Bitcoin layer 2.
“To call it ‘native Bitcoin’ is no more accurate than calling Lightning native Bitcoin: both are secured by Bitcoin, but both live on different architectural planes,” said Grim.
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