Tether is reintroducing its USDT stablecoin to the Bitcoin network this month, utilizing the RGB protocol. This development follows the company's 2025 announcement to expand Bitcoin support, marking a return to the blockchain where the asset first launched over a decade ago.
The project is led by the startup Utexo, which secured $7.5 million in a funding round led by Tether. Utexo holds a commercial license to issue the token and has partnered with blockchain-tracking firm Crystal Intelligence to manage compliance and monitoring requirements.
The RGB system enables private transactions by keeping payment details off the public Bitcoin ledger, recording only a digital fingerprint. Despite this, the new version is designed to function alongside existing networks rather than replace them, with Utexo providing a bridge for transfers.
Currently, Tron and Ethereum host over 90% of the total USDT supply, with $92 billion and $74 billion circulating on these networks respectively. Tether has not announced plans to withdraw support from these chains, maintaining its existing infrastructure for users.
Utexo has held discussions with Morgan Stanley regarding the integration of USDT on Bitcoin. While the launch was initially expected in mid-September, the timeline has shifted. Future plans include support for the Lightning Network to facilitate faster payments.
