USDT on Bitcoin Inches Closer as Tether Faces EU Regulatory Pressure
Tether's USDT stablecoin may soon expand to the Bitcoin network, according to Tether CEO Paolo Ardoino. The move comes as Morgan Stanley explores the possibility of using USDT on Bitcoin through a combination of the RGB Protocol and the Lightning Network.
Utexo co-founder Viktor Ihnatiuk met with Morgan Stanley staff in Washington to discuss the initiative, which could enable native USDT on Bitcoin. Ardoino amplified Ihnatiuk's post, expressing support for the project.
The potential rollout of USDT on Bitcoin comes amid regulatory scrutiny in Europe. The European Banking Authority (EBA) is reviewing the EU's MiCA framework, which includes rules governing stablecoin reserve requirements. Tether has been hesitant to apply for a MiCA license due to concerns about bank deposits and the €100,000 deposit insurance limit.
The EBA wants regulators to review reserve requirements, citing the need for stronger rules around certain third-country multi-issuer schemes. The European Central Bank (ECB) also asked the European Commission to recheck MiCA's stablecoin reserve requirement, specifically targeting the 60% bank deposits mandate.