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Tether is preparing to bring its flagship USDT stablecoin back to Bitcoin more than a decade after it first launched on the network.
The company plans to issue USDT natively on Bitcoin using the RGB protocol version 0.11.1, with infrastructure provider UTEXO leading the commercial rollout.
The move marks a significant milestone for Bitcoin’s ecosystem, as it reintroduces the world’s largest stablecoin to the blockchain where it debuted in 2014 through the Omni Layer (formerly Omni-Mastercoin). If successful, the rollout could expand Bitcoin’s role beyond a store of value by enabling faster, cheaper, and more private stablecoin payments through native Bitcoin infrastructure.
USDT originally launched on Bitcoin before migrating much of its activity to alternative blockchains such as Tron and Ethereum, which eventually became the dominant networks for stablecoin transfers.
The new integration aims to reverse that trend by leveraging the RGB protocol, a smart contract system built around Bitcoin’s UTXO architecture. Rather than relying on account-based models used by Ethereum-compatible blockchains, RGB uses client-side validation while anchoring security directly to the Bitcoin blockchain.
Tether Brings USDT Back to Bitcoin With RGB Rollout
Tether, issuer of USDT, the world’s largest stablecoin, plans to issue USDT natively on Bitcoin through RGB protocol v0.11.1, with UTEXO leading the commercial rollout. The move would bring USDT back to the Bitcoin network,… pic.twitter.com/QsROh4vehd
— Wu Blockchain (@WuBlockchain) July 7, 2026
Combined with the Lightning Network, the protocol enables near-instant stablecoin transfers while reducing settlement costs and improving transaction privacy.
The company will act as the issuer and distributor of Bitcoin-native USDT in partnership with Tether, providing APIs, software development kits, and infrastructure needed for wallets and exchanges to integrate the new payment rails.
One of RGB’s primary selling points is enhanced privacy.
Unlike many account-based blockchains where users often reuse wallet addresses, Bitcoin’s UTXO model naturally generates fresh addresses for transactions, making it more difficult to trace payment histories. RGB builds on that architecture while using the Lightning Network to move transactions off-chain before final settlement.
Everyone spent 10 years arguing which chain wins onchain finance.
It was Bitcoin the whole time. 😏
— Utexo (@utexocom) July 7, 2026
According to UTEXO, this approach reduces blockchain footprints while eliminating many of the intermediaries that currently add fees to stablecoin transfers.
The company argues that today’s cross-chain USDT transfers often require users to pay multiple layers of costs, including wallet fees, swap commissions, slippage, and network fees denominated in separate tokens such as TRX on the Tron network.
Running USDT directly over Bitcoin and Lightning could simplify that process by allowing users to move between Bitcoin and USDT without relying on multiple third-party services.
The launch also represents a strategic attempt to challenge Tron’s dominance in the stablecoin market.
Over the past several years, Tron has become the largest blockchain for USDT circulation, largely because of its low transaction costs and fast settlement speeds. RGB’s prolonged development delays allowed alternative networks to capture that market while Bitcoin remained largely absent from stablecoin payments.
UTEXO believes the combination of Bitcoin’s security and Lightning’s scalability now offers a competitive alternative.
Beyond transaction efficiency, supporters argue that Bitcoin provides a more resilient settlement layer than newer blockchain networks. While USDT itself remains centrally issued by Tether, anchoring transfers to Bitcoin could reduce infrastructure risks associated with less mature chains.
The RGB protocol traces its origins to research dating back to 2014 and has undergone years of development before reaching production readiness. With version 0.11.1 now available, UTEXO expects the first commercial deployments within weeks.
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