Tether brings USD₮ to Bitcoin with RGB: native stablecoin, privacy, and reduced costs. Here’s what’s changing

USD₮ on Bitcoin debuts on RGB: Tether announces the arrival of its stablecoin in a native version, with lighter and more private transactions anchored to the security of Bitcoin. In this guide: how it works, compatible wallets, advantages, risks, and what to monitor in the coming months.

Recently, Tether announced the launch of USD₮ on RGB, aiming for faster payments, greater privacy, and reduced pressure on the main chain.

The move, although the exact date and some technical details remain according to what is reported on the official Tether channels, shifts the issuance and transfer of assets to a client-side model that leaves Bitcoin as the security anchor.

In this context, the stated goal is to lighten the network while maintaining finality and immutability guaranteed by the base layer.

According to the official changelogs and analyses from the specialized press, the RGB protocol reached an operational milestone with the release v0.11.1 in July 2025, enabling the creation of assets on mainnet as reported by Bitcoin Magazine on July 22, 2025.

In recent months, we have been monitoring the public repositories of the RGB-WG and the bridging test logs: a first transfer of USDT via RGB was reported on August 12, 2025, a step that confirms the operability of the test bridges and the speed with which the ecosystem is iterating on integrations.

RGB in brief: the “client-side” layer for assets and smart contracts on Bitcoin

RGB is a user-side validation protocol that allows the creation and exchange of digital assets by leveraging Bitcoin as the finality layer.

It is not a separate blockchain: heavy data remains off-chain, while only compact commitments are anchored on Bitcoin.

It should be noted that, with the release of v0.11.1 (mainnet, July 2025), RGB has reached sufficient maturity to enable real asset issuance, paving the way for a native stablecoin like USD₮.

An interesting aspect is the modular architecture, designed to minimize the footprint on the chain. Explore the technology on the official RGB website and consult the technical specifications of the protocol. A detailed analysis is available on Bitcoin Magazine.

How USD₮ Works on RGB: Issuance, Transfer, and Purpose

The model is simple in logic but advanced in implementation. In summary, the operational complexity is shifted to the clients, while Bitcoin remains the anchor ledger.

• Client-side issuance: the creation of USD₮ occurs with metadata and cryptographic proofs stored outside of Bitcoin’s mempool. Only a compact reference remains on the chain, useful for final verification.
• Private and lightweight transfers: the exchange of assets between wallets occurs through proofs and signatures that do not make transaction details public, reducing the exposed informational surface.
• Purpose on Bitcoin: periodically, or when necessary, states are “anchored” to Bitcoin to ensure immutability and security, with a verifiable link to the base layer.
• Local verification: each user independently validates the asset’s history, without relying on third-party nodes for the complete content. In this way, trust is minimized and remains verifiable.

Costs, performance, and privacy: what to expect

The transition to RGB aims to reduce the on-chain footprint of assets and improve the user experience. An interesting aspect is the ability to decouple the frequency of anchorings and the volume of off-chain trades, impacting costs.

• Fees: payments between users are off-chain and require on-chain fees only for the anchors; so far, Tether has not disclosed official figures on actual fees or throughput, and public benchmarks are still being updated.
• Latency: RGB trades can be almost instantaneous on the user side, with full finality tied to the anchors on Bitcoin. The perceived speed will also depend on the implementation of the wallets.
• Privacy: fewer metadata exposed on-chain and lower traceability compared to entirely on-chain emissions; compliance obligations for intermediaries still remain.

Wallet and interoperability: what changes for users

With USD₮ on RGB, it will be possible to hold BTC and USD₮ in the same wallet, as long as it is compatible with the RGB standard. In this context, the management of local data becomes an integral part of security.

• Updated wallets with support for RGB issuance/transfer will be needed;
• The backups must also include the RGB proofs in addition to the BTC keys;
• Interoperability with Lightning Network is an evolving area: work is underway on bridging and routing, with no guarantees of immediate compatibility. For technical details on the Lightning layer, see the project’s official website.

For tools and updates, visit the official RGB page and the working group repositories. It should be noted that the roadmaps of individual teams may vary.

Main Advantages of the RGB Model for USD₮

• Bitcoin Security: the purposes rely on the network with the greatest resilience in the sector, as highlighted by analyses from Bitcoin Magazine.
• Asset scalability: lightweight payloads and local validation reduce congestion and costs.
• Greater control for the user over shared information, with more private transactions.
• Flexibility for developers: programmable contracts and assets without the need for a new blockchain.

Limits, Risks, and Controversial Points

• User experience: client-side validation requires mature wallets, making backup and recovery of proofs more complex compared to traditional BTC seeds. To delve deeper into wallet security, read our article on how to choose a Bitcoin wallet.
• Compliance: KYC/AML regulations for issuers and platforms could limit the use of features that enhance privacy in certain jurisdictions.
• Fragmentation: standards and multiple implementations can create temporary incompatibilities between RGB wallets.
• Attack surface: security also depends on the quality of clients, libraries, and independent audits.
• Debate in the community: while some Bitcoin purists criticize the expansion of tokenized assets, others see it as a pragmatic extension of the network’s use. An in-depth look at the divisions within the Bitcoin community is available on Cryptonomist.ch.

Impact on the Ecosystem: Stable USD Payments on Bitcoin Infrastructure

Tether’s move could accelerate the adoption of tokenized assets on Bitcoin, unlocking practical scenarios such as retail payments in USD₮ with reduced costs, more efficient remittances, and volatility management for users and merchants.

It should be noted that, to materialize on a large scale, solid wallet-side integrations, reliable compliance tools, and interoperability paths with Lightning will be needed, as discussed in various industry analyses and technical notes published by the RGB-WG. Adoption scenarios of stablecoins in fintech are also analyzed on Cryptonomist.ch.

Offline transactions and use cases

Thanks to its off-chain nature, RGB allows offline transactions through the exchange of proofs between devices and subsequent reconciliation when the connection is available.

This model can prove useful in areas with low connectivity and in proximity contexts such as fairs, transportation, and retail environments. In this sense, operational resilience can improve, while still being tied to the correct management of proofs by users.

What to do now: users and developers

• Users: wait for the update of wallets compatible with RGB and carefully follow the backup instructions, avoiding fund transfers without understanding the proof mechanism.
• Merchant: test in sandbox environments the USD₮ revenue flows on RGB and evaluate the accounting and compliance requirements, considering any internal policies.
• Developers: follow the updates and guidelines available in the RGB-WG repositories on GitHub for SDK and compatibility standards.

Elements to Monitor in the Coming Months

In the coming months, certain technical and regulatory junctions will be crucial, influencing the adoption of USD₮ on Bitcoin with RGB.

• Adoption of wallets with full support for USD₮ on RGB.
• Interoperability with Lightning Network and other scaling layers.
• Compliance: the development of guidelines on stablecoin and privacy at a global level, especially in the EU and USA.
• Independent audits on clients, libraries, and Tether implementations related to USD₮ on RGB.
• Usage metrics: monitoring of volumes, effective fees, and average finality times as soon as available.

Essential FAQ

When USD₮ will be usable on RGB in retail wallets

Tether has announced the launch of USD₮ on RGB recently. The availability in wallets will depend on the update of individual providers and, until public versions are released, the use will remain limited. In other words, the timing may vary from project to project.

It is necessary to update or change wallet

Yes. To create, send, and receive native USD₮ on Bitcoin, it will be necessary to use an RGB-compatible wallet. It is important to check your provider’s documentation before proceeding to avoid configuration errors.

How to pay the fees

The on-chain fees, applied for the anchors, are calculated in BTC. The off-chain transactions between users involve local costs and do not require the publication of details on the chain; Tether has not yet provided official figures.

Compatibility with Lightning Network

Compatibility is not guaranteed natively. Currently, work is underway on integrations and bridges, but the implementation timeline depends on the progress of developers and the development of standards.

What happens if RGB proofs are lost

Proofs are essential to attest to the ownership of the asset. Without them, recovery could be impossible, so it is essential to follow the backup guidelines provided by the wallet and store them in secure copies.

Note on Missing Data

• Fee, throughput, and detailed timeline: currently, no official numbers have been released, and public benchmarks remain.
• List of partner wallets: currently being updated. It is recommended to check official channels for any progressive announcements.
• Independent audits: Public reports are expected regarding client implementations and the issuance of USD₮ on RGB, with particular focus on libraries and software supply chain.

In summary, USD₮ on Bitcoin with RGB introduces a native stablecoin that leverages Bitcoin’s security and reduces on-chain exposure. Effective adoption will depend on the maturity of wallets, interoperability with Lightning Network, and clear regulatory definitions in major markets, elements that will need to be monitored in the coming months.