Tether brings USDT back to Bitcoin after years away

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Tether brings USDT back to Bitcoin

Highlights

Tether is preparing to bring USDT back to the Bitcoin network.
UTEXO is leading the rollout with support from Tether.
The integration uses RGB protocol v0.11.1 and Lightning infrastructure.
Wallet providers and crypto exchanges are preparing support.

The rollout is tied to RGB protocol v0.11.1 and is being led by UTEXO, which is working with Tether to mint and distribute USDT on Bitcoin, CoinGape reported. The launch is expected in the coming weeks, while wallet providers and crypto exchanges are already preparing support for the integration.

USDT returns to its original chain

USDT was originally launched in 2014 on Bitcoin through the Omni-Mastercoin layer before activity shifted largely to faster and cheaper networks such as Tron, Ethereum, and Solana. Tether’s planned return does not simply restore the old Omni model. Instead, the new implementation uses RGB, a protocol designed to issue and transfer assets on Bitcoin through client-side validation.

RGB combines Bitcoin’s UTXO security model with off-chain validation and Lightning Network compatibility. That structure is intended to let users send and receive USDT from Bitcoin-native addresses while keeping many transaction details outside the public accounting model used by other chains.

For Tether, the move expands the ways USDT can circulate without leaving the Bitcoin ecosystem. For Bitcoin users, it could add a dollar-denominated asset to wallets and payment channels that already support Bitcoin transactions.

UTEXO builds the infrastructure

UTEXO is developing the software stack behind the rollout. The package includes APIs, developer tools, user-interface components, and a mint bridge for transfers between supported blockchains.

The company says direct integration with Tether could reduce the number of intermediaries involved in moving USDT and lower transaction costs. A key use case is quicker movement between Bitcoin and USDT, a process that today often requires exchanges, bridges, or multiple transaction steps.

The project is also meant to support faster off-chain transfers through Lightning. If the integration works as planned, users could move between BTC and USDT with fewer layers of slippage and fees than on many existing platforms.

Bitcoin gains a stablecoin test

The return of USDT to Bitcoin is important because it tests whether the network can support stablecoin activity without changing its base-layer role. Bitcoin remains the largest and most secure crypto network, but stablecoin usage has mostly moved elsewhere because other chains offer faster and cheaper transfers.

RGB and Lightning could change that balance if they make Bitcoin-based USDT practical for payments, trading, and settlement. The project still faces execution risk, including wallet support, exchange integration, and user adoption. It also comes as Tether faces regulatory pressure in Europe after failing to secure a MiCA license, which limits USDT’s position in part of the regulated market.

We have previously highlighted that Revolut is to delist USDT in August over regulatory and risk concerns.

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