Tether is preparing to launch USDT directly on the Bitcoin blockchain via the RGB protocol with Lightning Network support. The launch is expected as early as July. The goal is clear—to regain some of the transaction volume that for years has flowed into the Ethereum and Tron networks.
The Token Returns to Where It Began
USDT first appeared on Bitcoin back in 2014—at that time, the Omni Layer protocol was used. Later, the issuer shifted most activity to Ethereum and Tron, where lower fees and a developed infrastructure quickly made these networks the main platforms for the stablecoin. Today, according to Tether’s own reserve transparency data, about 85% of all USDT supply is on these two networks.
The new issuance will operate via RGB v0.11.1—a protocol for bitcoin assets developed by UTEXO. The company will also act as the issuer and distributor of the token in partnership with Tether. UTEXO co-founder Viktor Ignatyuk called this launch a milestone in Bitcoin’s history: “For the first time in eight or nine years, USDT is coming home.” According to him, the team has no room for error—a failure would bury the very idea of bitcoin as a settlement layer for stablecoins.
A Second Attempt at Lightning in One Year
This is not Tether’s first attempt to link USDT to the Bitcoin network via Lightning. Back in March 2026, the company completed a similar launch via the Taproot Assets protocol from Lightning Labs. That integration allowed USDT transactions via Lightning, leveraging the Taproot upgrade—which brought Bitcoin improved privacy, efficiency, and scripting capabilities.
RGB is technically different, though the goal is similar. Instead of registering asset commitments in Taproot outputs, as the competing protocol does, RGB confirms most transactions off the main blockchain—only a minimal cryptographic commitment is recorded on-chain for final settlement. Taproot Assets was originally designed for seamless work with Lightning Network. Essentially, the market is now seeing two different approaches competing to become the standard framework for stablecoins and tokenized assets in the Bitcoin ecosystem.
Both options give users similar benefits: the security of the main Bitcoin network combined with Lightning’s speed. Minimizing data recorded on the main chain lightens the blockchain and increases transaction privacy. Holders will be able to store USDT directly in bitcoin wallets and send it via Lightning-compatible apps.
Ignatyuk describes the practical effect simply: “With USDT and bitcoin on top of Lightning, for the first time, two main assets appear in one chain—they can be exchanged instantly and without price slippage.” RGB, meanwhile, is no longer an experimental technology—version 0.11.1 has been running on the main Bitcoin network since July 2025, so Tether’s launch relies on proven infrastructure, not a new development.
Who Is Behind the Project
UTEXO emerged as a joint venture of Boosty Venture Studio, Fulgur Ventures, and Tether’s investment division. Recently, the company raised $7.5 million in funding with participation from Tether, BigBrain VC, and Portal Ventures—a concrete institutional confirmation that RGB development is seen as a serious path for native bitcoin assets, not a side experiment.
Similar initiatives are being developed by other market participants. In April, Solv Protocol, together with UTEXO, implemented yield strategies based on direct Bitcoin-to-USDT transfers. The project also integrated its settlement layer with the x402 payment protocol, allowing machine USDT payments to process at about 50 milliseconds—this is already a scenario for automated systems and AI agents, not for retail users.
Analyst Skepticism: The Protocol Is Not the Main Thing
Independent researchers warn that the technical choice of protocol is far from everything. Galaxy Research, in a review of Tether’s previous Taproot Assets initiative, noted: the return of USDT to Bitcoin shows the network’s growing versatility—it is ceasing to be just “digital gold” and is becoming a platform for payments, decentralized finance, and tokenized assets.
At the same time, analysts warn of a serious obstacle: competing with Tron will be difficult precisely because of its already established payment infrastructure and accumulated liquidity. In other words, the success of the bitcoin version of USDT will be determined not by the elegance of the protocol, but by how widely it is adopted by exchanges, wallets, and payment services.
Lightning Already Handles Billions
The infrastructure for such a scenario is gradually maturing. According to River Financial, in November 2025, the Lightning network processed about $1.17 billion in transaction volume through 5.22 million payments—the first time in the network’s history that monthly volume exceeded a billion dollars. In January 2026, as reported by Blockonomi, the Secure Digital Market platform made a $1 million transfer via Lightning on the Kraken exchange in just 0.43 seconds.
What Will Decide the Outcome of the Competition
USDT emission remains a centralized process regardless of which blockchain serves as the base layer—this aspect of Tether’s business model does not change. What changes is the settlement infrastructure: for the first time in nearly ten years, Bitcoin has a real chance to regain its role as the main settlement layer for the world’s largest stablecoin.
The final outcome will be determined not by the technical superiority of one protocol over another, but by the readiness of the ecosystem. Listings on exchanges, support from wallets, integration into payment systems—these are the factors that will decide whether users will massively switch from Tron to the bitcoin version of USDT or if the new protocol will remain a niche solution for enthusiasts.
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