Tether moves to bring USDT back to Bitcoin natively
According to ChainCatcher, Tether is preparing to issue USDT natively on the Bitcoin network through the RGB v0.11.1 protocol, with UTEXO responsible for commercial issuance and distribution. The plan would mark USDT’s return to Bitcoin after many years, following its first appearance on the network in 2014 via the Omni protocol. UTEXO co-founder Viktor Ihnatiuk said the company has received support from Tether and is responsible for advancing the rollout of native USDT on Bitcoin.
RGB and Lightning are positioned as the core rails
The report said RGB uses client-side validation and can be combined with the Lightning Network, allowing USDT transfers to inherit Bitcoin’s UTXO security model while enabling instant, low-cost and privacy-focused transactions. Under this setup, users would be able to hold USDT directly through native Bitcoin addresses and send or receive the stablecoin through RGB-enabled Lightning wallets, without depending on other public blockchains or intermediary service providers.
Compared with the account-based networks where USDT currently circulates most heavily, including TRON and Ethereum, RGB relies on the UTXO model, which naturally supports one-time addresses. Combined with off-chain payments through Lightning, that structure could improve transaction privacy. The report also noted that deeper integration between UTEXO and Tether may help reduce intermediary fees and data collection. In addition, users may be able to use UTEXO’s existing cross-chain bridge to convert USDT across different blockchains at lower cost.