Tether Returns USDT to Bitcoin via RGB Protocol

Tether is issuing its USDT stablecoin natively on the Bitcoin network. This marks a return for the token, which was originally created on Bitcoin in 2014 before moving to other blockchains.

The launch, expected within weeks, uses the RGB protocol and is being led by UTEXO, a Bitcoin-native settlement layer. Tether itself led UTEXO's $7.5 million seed funding round in March 2026.

The RGB protocol version v0.11.1, now on mainnet, enables client-side validation. This keeps most transaction data off-chain while anchoring settlements to Bitcoin's security. The result is faster, cheaper, and more private transactions compared to older methods.

Lightning Network compatibility is a key feature, allowing near-instant USDT transfers at minimal cost. UTEXO's architecture creates new UTXOs for each transfer, facilitating potential BTC and USDT swaps without the slippage seen on congested networks.