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Tether Expands Stablecoin Integration with USD₮ on Bitcoin

  • Tether is launching USD₮ on RGB, which brings stablecoin support directly to Bitcoin.
  • Users can now send USD₮ and Bitcoin in the same wallet with private validation.
  • The stablecoin market stands at $280.29 billion, with USDT holding a 59.72% share.

Tether announced on August 28, 2025, that it will launch USD₮ on RGB, a next-generation Bitcoin protocol for digital assets. The company said the initiative will deliver private, scalable, and user-controlled stablecoin transactions directly on Bitcoin, a development described as a milestone for the network. The press release confirmed that RGB reached mainnet readiness with its 0.11.1 release, enabling asset issuance secured by Bitcoin while remaining lightweight and private.

According to Tether, this move positions Bitcoin beyond its role as a store of value by supporting native stablecoin transactions. With USD₮ on RGB, the company noted that billions of people could access fast, private, and lightweight digital payments through Bitcoin’s decentralized infrastructure.

Tether CEO Paolo Ardoino stated in the press release, “Bitcoin deserves a stablecoin that feels truly native, lightweight, private, and scalable. With RGB, USD₮ gains a powerful new pathway on Bitcoin, reinforcing our belief in Bitcoin as the foundation of a freer financial future.”

The announcement confirmed that users will be able to hold and transfer USD₮ alongside Bitcoin in the same wallet. Transactions will benefit from client-side validation, protecting balances and flows from exposure on the public blockchain.

Benefits of RGB Integration

The integration with RGB introduces several operational advantages. The model would enable users to experience more efficient privacy and sovereignty transactions by integrating the security of Bitcoin and the stability of the Tether stablecoin. Furthermore, the protocol supports offline transfers, making it possible to exchange value without internet connectivity.

The company explained that RGB works with the Lightning Network, enhancing payment speeds and lowering transaction costs. The inclusion of Lightning transport extensions will enable near-instant settlement experiences for both individuals and service providers. This development, Tether noted, opens possibilities for everyday commerce and financial transfers while maintaining Bitcoin’s decentralized guarantees.

Industry reports have indicated that USD₮ may become the first major stablecoin to exist natively on Bitcoin, a feature previously available only through sidechains or external protocols. Analysts pointed out that such integration demonstrates a broader evolution for stablecoins, providing direct access to Bitcoin’s liquidity while reducing reliance on additional infrastructure.

Tether said the initiative strengthens Bitcoin’s role as the base layer of a decentralized financial system. The company aims to ensure that even as other blockchains and protocols gain greater global influence, stablecoins integrated into Bitcoin will continue to play a central role in global finance.

Related: Tether Backs Rumble’s $1.17B Bid for AI Firm Northern Data

Market Context and Stablecoin Growth

The announcement arrives at a time of strong growth for the stablecoin sector. Data from DefiLlama shows the total stablecoin market capitalization at $280.29 billion. Within the past week, the industry expanded by $2.79 billion, representing a 1.01% increase.

Tether
Source: DefiLlama

USDT holds 59.72% dominance of the stablecoin market, maintaining its lead over competitors. The numbers underscore the fact that the USDT remains a source of liquidity in exchanges and decentralized networks, enabling trading, payments, and cross-border transactions.

As Tether decided to introduce USD₮ to RGB, the association between Bitcoin security and Tether hegemony can transform the competitive environment.  Will stablecoins on Bitcoin redefine the network’s role in global finance?

Disclaimer: The information provided by CryptoTale is for educational and informational purposes only and should not be considered financial advice. Always conduct your own research and consult with a professional before making any investment decisions. CryptoTale is not liable for any financial losses resulting from the use of the content.

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