Tether Brings USDT Back to Bitcoin, But Will It Regain Its Role as a Payments Network?
Tether is relaunching its USDT stablecoin on the Bitcoin network in October 2026, marking a return of over a decade. This move will connect Bitcoin directly with USDT, valued at $184 billion, designed to maintain a value of $1.
USDT shifted away from Bitcoin in previous years to take advantage of faster and cheaper networks like Tron and Ethereum. Tether CEO Paolo Ardoino said 'It's coming home,' but does this move mean that Bitcoin will become a payments network again?
Tether is using Utexo, a company backed by Tether with a license to distribute USDT, to issue the stablecoin on Bitcoin. Utexo builds on the RGB protocol, which enables tokens to operate on Bitcoin while keeping most transaction details private off the public ledger.
Bitcoin holders might find the launch less beneficial than it appears at first glance. A USDT balance on Bitcoin represents a dollar claim on Tether, offering no exposure to Bitcoin's price fluctuations. Miners may also earn less from USDT transactions due to the RGB protocol keeping most transfer data off Bitcoin's main chain.