Tether, the organization behind USDT, is preparing to launch the stablecoin natively on Bitcoin utilizing the RGB protocol version v0.11.1. This initiative, spearheaded by the UTEXO software lab, marks a return of USDT to the blockchain where it originally debuted in 2014 through the Omni-Mastercoin Layer.
UTEXO, the company driving this commercial rollout, has established itself as the official issuer and distributor of the Bitcoin-native USDT in collaboration with Tether. Viktor Ihnatiuk, co-founder of UTEXO, emphasized in an exclusive interview with Bitcoin Magazine, “Finally, after eight years of development—if not more—we are the company that is launching USDT over Bitcoin with strong support from Tether.”
The RGB protocol leverages client-side validation in conjunction with the Lightning network for instantaneous and private settlements, while ensuring security through Bitcoin’s UTXO model. Users can anticipate managing USDT on native Bitcoin addresses, as well as sending and receiving it over the Lightning network using compatible wallets.
The RGB protocol on Bitcoin also enhances privacy for USDT users, as the asset benefits from the UTXO model, which standardizes unique addresses for each transaction. This approach contrasts sharply with the address reuse common to account-based systems in blockchains such as Tron, Ethereum, or Solana. Address reuse undermines on-chain privacy; however, many altcoins have adopted interfaces that encourage this practice, posing risks to users. The integration of RGB with the Lightning network further bolsters user privacy by facilitating USDT transactions through the off-chain payment network, resulting in minimal traces on the public blockchain. Additionally, the close collaboration with Tether reduces reliance on intermediary companies that may impose additional fees or collect user data.
In this regard, Viktor emphasized, “We built Utexo so that USDT could move on Bitcoin the way money is supposed to move: instantly, privately, with no surprises on costs. Our partners integrate our API once and can route USDT on the most resilient open network ever built, with full control over the cost structure.”
UTEXO vs. TRON
UTEXO emerged from a collaborative effort involving Viktor’s Boosty Venture Studio, Fulgur Ventures, and Tether Investments, with a clear goal of bringing RGB to the mainnet after prolonged delays experienced under previous development teams. Although the protocol has been in active development since at least 2016, it regrettably missed the opportunity to launch during the 2017 bull market, allowing the TRON blockchain to dominate USDT volume and utilization across emerging markets, a status it still maintains.
UTEXO is specifically focused on developing the essential “last mile” of software required for widespread USDT deployment throughout the Bitcoin ecosystem. This includes the creation of a software development kit, APIs, mid-level protocols, UI design work, and a live mint bridge located at mint.utexo.com. This bridge facilitates the movement of USDT across prominent blockchains with “deterministic low fees” and no intermediaries, thanks to its direct partnership with Tether as the primary issuer. The RGB protocol layer was originally developed by Bitfinex R&D Strategist Federico Tenga.
Viktor further articulated the challenges faced when swapping USDT for Bitcoin through existing channels: “Currently, to exchange USDT for Bitcoin, users incur high fees due to multiple wallet charges—including a one percent fee per wallet and an additional one percent swap provider charge, leading to an overall cost of three percent, along with significant wait times for the swap to occur.” He continued, “With USDT and Bitcoin over Lightning, for the first time, two primary assets can coexist on a single chain, allowing for instantaneous swaps with no slippage. This enables the decentralized exchange of USDT for Bitcoin and vice versa on-chain, with pricing closely aligned with spot markets on platforms like Binance.”
In contrast, networks such as TRON, which are primarily utilized for transferring USDT, introduce additional fees, swap commissions, and complications for the user experience. These systems require a distinct address type, with transaction fees payable in an asset like TRX, which is exclusively used for facilitating USD transfers. Given that most monetary volume in the crypto sphere is concentrated in Bitcoin and Tether, the necessity of purchasing an altcoin merely to cover fees often feels burdensome.
Bitcoin, serving as the foundational payment infrastructure for USDT, also offers a level of blockchain security that is not attainable by alternative chains. While USDT remains fundamentally centralized through its association with Tether, the associated risks—such as potential contentious forks or significant bugs in newer blockchain systems—are mitigated by Bitcoin’s established and conservative architecture, which provides a quality assurance that surpasses that of its competitors.
The RGB protocol has its origins in Peter Todd’s single-use seals introduced in 2014, with formalization in 2016 by Giacomo Zucco and Riccardo Casatta. Initially related to the names “Riccardo Giacomo Bitcoin,” it was later rebranded as “Really Good Bitcoin.” Tether’s exploration of the protocol was delayed due to prior team challenges. Had RGB been implemented as scheduled around 2019, the landscape of stablecoins and the broader DeFi industry might have evolved differently, centering on Bitcoin’s UTXO model rather than Ethereum’s account-based system.
Consequently, the reintroduction of USDT to Bitcoin is a principal motivation for UTEXO. Viktor succinctly articulated this sentiment: “For the first time in eight or nine years, USDT is coming back home. We cannot afford to fail; failure would undermine Bitcoin’s perception as a viable settlement layer.”
USDT on Bitcoin via RGB is anticipated to launch imminently, potentially within July, with various wallets, including Tether Wallet, announcing support, accompanied by exchanges worldwide confirming integrations.
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