Tether has announced the launch of USD₮ on the new RGB protocol, allowing assets to exist natively on the Bitcoin blockchain.
What is RGB and its Functionality
RGB is a new protocol that has just launched its mainnet with version 0.11.1. It is designed to offer users more capabilities than just storing Bitcoin. RGB layers private and scalable asset issuance on top of the Bitcoin base layer, providing functions that enable users to transact more conveniently.
User Convenience and Advantages
With USD₮ on RGB, users will be able to hold both BTC and USD₮ in the same wallet, simplifying the process of transferring value without needing to constantly switch between chains. Tether also emphasizes the importance of privacy and the ability to transact offline, which is especially relevant in areas with poor internet connectivity.
Tether's Strategy and the Future of Stablecoins
This move fits into Tether's broader strategy of spreading stablecoin liquidity across multiple rails. By moving USD₮ onto RGB, the company is betting on the demand for stablecoins that carry the decentralization and security of Bitcoin while remaining user-friendly.
The launch of USD₮ on RGB is an experiment in integrating the convenience of tokenized money into a time-tested blockchain system, which could open new horizons for users and services.
