Tether to relaunch USDT on Bitcoin via RGB protocol

Tether plans to relaunch its USDT stablecoin on the Bitcoin network in October 2026. This move marks a return to the Bitcoin blockchain after Tether discontinued its previous Omni Layer implementation approximately three years ago.

The new infrastructure will be built by Utexo, a startup that recently raised $7.5 million in a funding round led by Tether. The technical foundation for this relaunch is the RGB protocol, which utilizes client-side validation. This mechanism allows transaction details to remain off-chain between parties while anchoring proof of ownership to the Bitcoin network's UTXO set, ensuring that only the existence of the transaction is visible on the blockchain.

In addition to the RGB protocol, plans include integrating USDT with the Lightning Network to facilitate faster and lower-cost payments. The expansion aims to provide tools and APIs for exchanges, wallet services, and payment processors. This development introduces a third, architecturally distinct channel for USDT, alongside its current primary operations on the Ethereum and Tron networks.