Tether USDT Is Returning To Bitcoin With Latest RGB Integration
Highlights
- Tether's USDT stablecoin is re-entering the Bitcoin network.
- The initiative hinges on the RGB rollout of USDT on Bitcoin.
- On the contrary, Tether is facing the heat in the European region as its MiCA license was not granted.
Tether is looking to re-enter the Bitcoin network with its USDT stablecoin as of RGB protocol v0.11.1. It marks a return to the blockchain where the asset was originally launched in 2014 as part of the Omni-Mastercoin layer.
Tether’s USDT To Make Comeback On Bitcoin
UTEXO is spearheading the rollout as they partner with Tether to mint and distribute Bitcoin-based USDT. It is expected to launch in the coming weeks, and wallet providers and crypto exchanges are already working to support the integration.
In his conversation with Bitcoin Magazine, UTEXO’s co-founder, Viktor Ihnatiuk, called the achievement one that had taken years to come to fruition. “Finally, after eight years of development—if not more—we are the company that is launching USDT over Bitcoin with strong support from Tether,” he said.
The RGB protocol is a combination of Bitcoin UXTO security model, client-side validation, and Lightning Network. This will enable users to send and receive USDT from Bitcoin native addresses and facilitate faster off-chain transactions. The design also enhances privacy by bypassing the accounts-based structure that is prevalent on networks like Tron, Ethereum, and Solana.
According to UTEXO, it has developed a software stack. This contains APIs, developer tools, UI components, and a mint bridge for transfers between supported blockchains. Moreover, the company noted they can minimize additional intermediaries and transaction fees through direct integration with Tether.
What Do Officials Say?
“We built Utexo so that USDT could move on Bitcoin the way money is supposed to move: instantly, privately, with no surprises on costs,” Ihnatiuk explained the objective, per Bitcoin Magazine report.
The executive also noted the lack of ease with which people are currently able to switch between Bitcoin and USDT on existing platforms. Further, they highlighted how users sometimes end up paying many layers of fees and slippage. He said combining both assets via Lightning would allow for quicker swaps with no such inefficiencies.
After years of delays, RGB was finished by a joint venture between Boosty Venture Studio, Fulgur Ventures and Tether Investments, called UTEXO.
Ihnatiuk emphasized that the launch was crucial and said: “For the first time in eight years or nine years, USDT is coming back home. We have no chance to fail.”
However, before this feat, the USDT stablecoin made an exit from the EU market after not receiving the MiCA license.
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