Tether Revives USDT on Bitcoin Network
Tether is reviving its USDT stablecoin on the Bitcoin network, a move that could potentially revive Bitcoin's status as a payments network. The $184 billion stablecoin will be issued through Utexo, a company backed by Tether, using the RGB protocol. This protocol enables private transfers, direct exchanges between BTC and USDT, and Bitcoin-backed loans without creating additional tokens. Utexo also plans to integrate USDT into the Lightning Network, Bitcoin's faster payment layer.
However, this move may not necessarily benefit Bitcoin holders or miners. A USDT balance on Bitcoin represents a dollar claim on Tether, not exposure to Bitcoin's price fluctuations. Miners may also earn less than expected, as the RGB protocol keeps most transfer data off Bitcoin's main chain, resulting in significantly lower fee revenue from USDT transactions.
Despite this, private dollar transfers on Bitcoin could spark interest from businesses that don't want every transaction visible on a public ledger. Tron and Ethereum currently hold most USDT, and Bitcoin's inherent design can hinder heavy payment traffic, adding a new block about every 10 minutes and limiting the number of transactions it can process.