The stablecoin market is receiving a significant update. Tether has announced plans to issue USDT directly on the Bitcoin network. This will utilize the RGB protocol version 0.11.1, along with the UTEXO infrastructure. This decision marks the return of the largest stablecoin to its roots, but at a qualitatively new technological level.
Technical Foundation and Capabilities
Integration with RGB v0.11.1 allows for the implementation of smart contracts and assets in Bitcoin transactions without overloading the main network. Combined with UTEXO, this enables USDT transfers both through the Bitcoin blockchain itself and via the Lightning Network. Thus, users will gain high transaction speeds and minimal fees, characteristic of Bitcoin's second layer, but with the liquidity and stability of USDT.
Historical Context and Market Dynamics
It is worth noting that USDT debuted on the market back in 2014 on the Omni protocol, built on top of Bitcoin. However, over time, the main activity and issuance of the token shifted towards faster and cheaper networks such as Ethereum, TRON, and Solana. Now, Tether is returning to its original source, but with modern scaling tools.
Analytical Conclusion
This step strengthens Bitcoin's position not only as a store of value but also as a platform for decentralized finance. For Tether, this is a way to diversify risks and expand its audience, especially among hardcore Bitcoin enthusiasts. In my professional opinion, this decision could act as a catalyst for growing interest in RGB and the Lightning Network, as well as increase the real utility of USDT within the ecosystem of the first cryptocurrency.