Tether is preparing to issue USDt natively on Bitcoin through RGB protocol version v0.11.1, with UTEXO leading the commercial rollout.

The planned launch would bring USDt back to the network where it first appeared in 2014 through the Omni-Mastercoin Layer. 

UTEXO is working with Tether to distribute the Bitcoin-native version of the stablecoin and said the integration could allow users to send and receive USDt through native Bitcoin addresses, compatible wallets, and the Lightning Network.

UTEXO co-founder Viktor Ihnatiuk stated that the launch follows years of RGB development and has Tether’s support.

RGB uses client-side validation and Bitcoin’s UTXO model to support asset transfers while using Bitcoin for settlement. 

When combined with Lightning, the protocol is intended to enable faster USDt payments without recording every transfer directly on the public blockchain.

UTEXO said it is developing infrastructure for broader USDt deployment across Bitcoin, including developer tools, APIs, interface components, and a mint bridge. 

The company said the bridge allows users to move USDt across supported networks with predictable fees through direct integration with Tether.

Ihnatiuk described UTEXO as a way for partners to move USDt on Bitcoin quickly, privately, and with more predictable costs through a single API integration.

UTEXO was formed through a venture involving Boosty Venture Studio, Fulgur Ventures, and Tether Investments. 

Its work focuses on bringing RGB to mainnet after prior development delays. The RGB protocol layer was developed by Bitfinex R&D strategist Federico Tenga.

The rollout comes as USDt activity remains concentrated on several other networks, including Tron. 

UTEXO says issuing USDt on Bitcoin could reduce reliance on separate blockchain tokens used to pay transaction fees on other networks.

Ihnatiuk described the launch as an effort to return USDt to its original network.

Ihnatiuk framed the launch as an important test for USDt’s return to Bitcoin and Bitcoin’s role as a settlement layer.

USDt on Bitcoin through RGB is expected to launch within weeks, possibly in July. Wallet and exchange integrations are expected to follow.