Tether Brings Back USDT to Bitcoin via Lightning Network

Tether's USDT is making its way back to Bitcoin after being largely absent from the network since it was first issued via the Omni Layer protocol. In January 2025, Tether announced its intention to support transfers on Bitcoin and the Lightning Network, with the goal of enabling faster and cheaper transactions.

Utexo, a company backed by Tether, has been working on building infrastructure for USDT transfers over Bitcoin, using technologies like RGB (which allows tokens to move without placing every piece of information directly on the public blockchain) and Taproot Assets. Utexo co-founder Viktor Ihnatiuk claims that more than 450 businesses are in its pipeline, including exchanges, wallets, and payment companies.

Tether's CEO Paolo Ardoino has confirmed that the move is ongoing support for USDT on Bitcoin, rather than a new project from Tether. The largest stablecoin, with a market value of around $184 billion, could potentially expand the network's role beyond holding and transferring BTC if even a small percentage of its activity were to move through Bitcoin.