Tether has announced the launch of its USDT stablecoin on the Bitcoin blockchain using the RGB protocol. This marks the first implementation of USDT on the Bitcoin platform.
Expansion of USDT to Bitcoin Blockchain
Tether officially stated that USDT will now be available on the RGB protocol, designed for issuing digital assets on Bitcoin. Notably, RGB has just launched with the 0.11.1 release and aims to enhance Bitcoin's functionality beyond its role as a store of value.
By leveraging RGB, users can execute USDT transactions directly on Bitcoin without relying on other blockchains. This means users can hold both Bitcoin and USDT in the same wallet and send either asset without the need for exchanges.
Tether CEO's Statement
Tether's CEO, Paolo Ardoino, emphasized that Bitcoin deserves a stablecoin that is native, lightweight, private, and scalable. Ardoino explained that the integration with RGB provides a new pathway for USDT to Bitcoin, demonstrating Tether's confidence in Bitcoin as the foundation of a financial system built on open access.
Impact on Cryptocurrency Market
The launch of USDT on Bitcoin may affect capital flows in the cryptocurrency market. Market participants suggest that direct stablecoin support on the largest digital asset, Bitcoin, may encourage more investors to move their funds into the network. Tether remains the largest stablecoin issuer, with a market capitalization of $167 billion, and reports holding 77,780 BTC on its balance sheet.
The introduction of USDT on the Bitcoin blockchain represents a significant step in the development of stablecoins and their integration within the Bitcoin ecosystem. This advancement may facilitate broader use of stablecoins for everyday transactions.
