Tether has confirmed that USDT will return to Bitcoin as a native asset through the RGB protocol, with the launch expected within weeks after more than eight years of protocol development.
Summary
- Tether is preparing to launch native USDT on Bitcoin through the RGB protocol, with the rollout expected within weeks.
- The RGB integration will allow USDT to move over Bitcoin and the Lightning Network with native addresses, improved privacy, and lower transaction friction.
- UTEXO said the launch will bring USDT back to Bitcoin after years of development that allowed Tron to dominate stablecoin transfers.
According to an exclusive interview published by Bitcoin Magazine, Tether is working with software company UTEXO to issue USDT natively on Bitcoin using RGB protocol version v0.11.1, bringing the stablecoin back to the blockchain where it originally launched in 2014 through the Omni-Mastercoin Layer.
The rollout is being led commercially by UTEXO, which describes itself as the issuer and distributor of Bitcoin-native USDT in partnership with Tether. Speaking to Bitcoin Magazine, UTEXO co-founder Viktor Ihnatiuk said the company had spent years building the technology needed to make the launch possible with Tether’s support.
RGB brings USDT to Bitcoin and Lightning
Built around Bitcoin’s UTXO model, RGB combines client-side validation with the Lightning Network to let users send and receive USDT through native Bitcoin addresses while enabling instant off-chain payments with compatible wallets. According to Bitcoin Magazine, the design also improves privacy because Bitcoin creates fresh addresses for transactions instead of relying on reusable account addresses commonly seen on networks such as Ethereum, Tron and Solana.
The publication added that routing payments through Lightning leaves fewer traces on the public blockchain, while UTEXO’s direct integration with Tether reduces the number of intermediaries involved in issuing and moving the stablecoin.
“We built Utexo so that USDT could move on Bitcoin the way money is supposed to move: instantly, privately, with no surprises on costs,” Ihnatiuk told Bitcoin Magazine, adding that businesses integrating the platform would have more control over transaction costs through its APIs.
Bitcoin Magazine reported that UTEXO has also developed software components needed for commercial adoption, including APIs, a software development kit, user interface tools, and a live mint bridge that allows users to move USDT across multiple blockchains with deterministic low fees through direct integration with Tether. The RGB protocol itself was developed by Bitfinex Research and Development Strategist Federico Tenga.
According to Bitcoin Magazine, Bitcoin-native USDT through RGB is expected to launch within weeks, possibly during July, with wallets, including Tether Wallet, planning support alongside integrations from cryptocurrency exchanges. Ihnatiuk described the release as bringing USDT “back home” to Bitcoin, adding that its success would be important for establishing Bitcoin as a settlement layer for digital assets.
UTEXO targets Tron-dominated stablecoin market
RGB has been under development since at least 2016, but repeated delays meant the protocol was not ready during the 2017 cryptocurrency bull market. Bitcoin Magazine said this allowed Tron to become the dominant blockchain for USDT transfers, particularly across developing markets, where it continues to process much of the stablecoin’s activity.
Speaking to the publication, Ihnatiuk argued that users currently face several layers of costs when swapping between Bitcoin and USDT through existing services, including wallet fees, swap provider charges and slippage. He said placing both Bitcoin and USDT on the same settlement layer through Lightning could enable near-instant swaps without the additional costs commonly associated with third-party services.
The report also noted that Tron users must typically maintain TRX solely to pay network fees, creating extra friction for transactions. By comparison, running USDT directly on Bitcoin removes the need for a separate fee token while relying on Bitcoin’s long-established security model.
Historically, RGB traces its origins to Peter Todd’s single-use seals proposal in 2014 before being formalised by Giacomo Zucco and Riccardo Casatta in 2016. Bitcoin Magazine said Tether had explored the protocol years earlier, but adoption was delayed as development progressed under previous teams.
The upcoming rollout follows several Bitcoin-focused products introduced by Tether this year. In April, the companyopen-sourced its Bitcoin-focused Mining Development Kit, giving miners a programmable software layer to manage Bitcoin ASIC fleets and automate operations, while more recently it introduced the self-custodial tether.wallet application with support for Bitcoin, Lightning and USDT.