Tether (USDT) Returns to Bitcoin via Utexo and RGB Protocol
Tether CEO Paolo Ardoino announced that USDT will return to the Bitcoin blockchain in the coming weeks, utilizing Utexo and the RGB protocol. This move could significantly boost liquidity in crypto markets and strengthen Bitcoin's position as a foundational layer for stablecoin operations.
Tether is bringing USDT back to Bitcoin via Utexo and the RGB protocol.
The move could increase liquidity in crypto markets.
Potential for capital deployment, such as $7 billion in Bitcoin-backed lending.
Strengthens Bitcoin's role as a foundational layer for stablecoin operations.
Story
Tether, the issuer of the largest stablecoin USDT, is planning the return of USDT to the Bitcoin blockchain. This was announced by CEO Paolo Ardoino, who expects the implementation via Utexo and the RGB protocol within weeks. USDT was initially launched on Bitcoin's Omni Protocol in 2014 but has not been natively available in the Bitcoin ecosystem since. Cryptocurrency exchange KuCoin anticipates that this move will bring more liquidity to crypto markets. Viktor Ihnatiuk, co-founder of Utexo, highlights the potential for capital deployment, such as $7 billion in Bitcoin-backed lending on Aave. The reintroduction of native USDT on Bitcoin could significantly enhance Bitcoin's utility within the DeFi ecosystem, attracting substantial capital and increasing liquidity for Bitcoin-denominated activities. This could also solidify Bitcoin's role as a foundational layer for stablecoin operations and enable new use cases.
Issue context
The crypto market is experiencing a period of significant infrastructural developments, pointing towards increased institutional participation. Payward, Kraken's parent company, in collaboration with Singapore Gulf Bank (SGB), has launched 24/7 USD settlement for institutional clients in eligible Asian and Gulf jurisdictions. This initiative, announced on October 5, aims to bridge the disconnect between continuous crypto trading and traditional banking hours, potentially improving capital efficiency and reducing operational friction for large market participants. Concurrently, Tether announced the return of USDT to the Bitcoin blockchain via the Utexo and RGB protocol, which could potentially bolster Bitcoin's liquidity and DeFi utility. These developments signal a maturing market infrastructure that better accommodates institutional demands.
Current developments indicate increasing institutional integration and technological advancements in crypto. Simultaneously, Ethereum's liquidity constraints and Bitcoin's sensitivity to macro data point to potential volatility. Note that large whale transactions can influence short-term market movements but do not necessarily signal a trend. Your risk assessment should account for these factors.
Market pulse
BTC
$85K
+0.37% 24h / +0.7% 7d
Fear & Greed
70
Greed
BTC Funding
+0.0042%
20 perp markets · Open Interest $56.2B
BTC Open Interest
$56.2B
24h volume $55.9B · basis +0.019%
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This story is part of the Biturai Market Brief and is for informational purposes only. No investment advice.