Tether Brings $184 Billion Stablecoin Back to Bitcoin
Tether, the largest stablecoin issuer, is relaunching its USDT on the Bitcoin network in October 2026, 12 years after initially abandoning it. The move marks a return to the original platform, with a valuation of around $184 billion. Tether CEO Paolo Ardoino described the move as 'It's coming home.'
The RGB protocol, used by Utexo, will keep most USDT transaction data off the Bitcoin main chain, resulting in minimal fee revenue for miners. The relaunch will also integrate USDT into the Lightning Network, Bitcoin's faster payment layer.
However, this move may not benefit Bitcoin holders as much as it seems. A USDT balance on Bitcoin represents a dollar claim on Tether, offering no exposure to Bitcoin's price fluctuations. Additionally, miners may earn less than expected due to the lower fee revenue from USDT transactions.
Tron and Ethereum still hold most USDT, and El Salvador has opted for another blockchain for its stablecoin initiatives. As a result, this relaunch primarily benefits Tether by reaching new users, while Bitcoin holders see minimal short-term change in BTC price or miner income.