USDT Returns to Bitcoin: RGB and UTEXO Enable Private Lightning Settlements

Bitcoin Magazine USDT Returns to Bitcoin: RGB and UTEXO Enable Private Lightning Settlements Tether, the company behind USDT, is preparing to issue the stablecoin natively on Bitcoin through the RGB protocol version v0.11.1.

Deployed by the UTEXO software lab, USDT is set to return to the chain where it first launched in 2014 via the Omni-Mastercoin Layer. UTEXO, the company leading the commercial rollout, has positioned itself as the issuer and distributor of this Bitcoin-native USDT in partnership with Tether. “Finally, after eight years of development—if not more—we are the company that is launching USDT over Bitcoin with strong support from Tether,” said Viktor Ihnatiuk, UTEXO co-founder, in an exclusive interview with Bitcoin Magazine.

The RGB protocol combines its novel client-side validation with the Lightning network for instant, private settlements, while anchoring security to Bitcoin’s UTXO model. Users can expect to be able to handle USDT on native Bitcoin addresses as well as send and receive it over the Lightning network with compatible wallets. The RGB protocol on Bitcoin also offers significant privacy features to USDT users as the asset benefits from Bitcoin’s UTXO model, which standardizes fresh addresses for every transaction compared to the account-based address reused commonly in EVM blockchains like Tron, Ethereum or Solana.

Address reuse is the first mistake of onchain privacy, yet most altcoins built their interfaces to reuse addresses, despite the risk it poses to users. RGB’s integration with the Lightning network further protects user privacy by moving USDT via the offchain payments network, which leaves few marks on the public blockchain. The deep integration with Tether also means that there are fewer middleman companies charging extra fees or collecting data.

On the topic, Vktor emphasized that, “We built Utexo so that USDT could move on Bitcoin the way money is supposed to move: instantly, privately, with no surprises on costs. Our part