Deep Dive
1. USDT Native on Bitcoin via RGB (28 August 2025)
Overview: Tether announced plans to issue USDT directly on the Bitcoin blockchain using the RGB protocol. This allows users to hold and transfer both Bitcoin and USDT in the same wallet, with support for offline transactions.
The integration leverages RGB v0.11.1, a "layer-2" smart contract system built for Bitcoin. It uses client-side validation, meaning transaction details are kept private and aren't broadcast to the main blockchain, enhancing privacy and scalability. The move aims to make stablecoins a native feature of Bitcoin's ecosystem.
What this means: This is bullish for USDT because it significantly expands its utility and reach onto the world's most secure and decentralized network. Users benefit from more private transactions and the ability to use a single wallet for both Bitcoin and dollar stability, which could drive broader adoption.
(Coinspeaker)
2. USDT0 & XAUt0 Launch on Polygon (27 August 2025)
Overview: Tether launched omnichain versions of its USDT and gold-backed XAUT stablecoins on the Polygon network. These tokens, called USDT0 and XAUt0, are minted by locking the original assets on Ethereum, enabling seamless movement across blockchains.
This deployment uses LayerZero's Omnichain Fungible Token (OFT) standard. It adds Polygon as the 12th supported chain for USDT0, chosen for its low-cost environment and strong adoption in payments and decentralized finance (DeFi).
What this means: This is bullish for USDT because it deepens liquidity across major ecosystems, making it cheaper and faster for users to access Tether's stablecoins. It strengthens Tether's position as the backbone for cross-chain transactions and real-world asset adoption.
(Cointelegraph)
3. Sunsetting Support on Five Legacy Blockchains (1 September 2025)
Overview: Tether is ending support for USDT redemptions on five blockchains: Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand. After the deadline, remaining tokens on these networks will be frozen.
This decision is based on a strategic review showing negligible usage and volume on these chains compared to giants like Tron and Ethereum. It allows Tether to reallocate development and security resources to more active and scalable ecosystems.
What this means: This is neutral to bullish for USDT because it streamlines operations and enhances security by reducing the attack surface from less-maintained codebases. Users must migrate their assets, but the overall network becomes more robust and focused.
(CryptoTimes)
Conclusion
Tether's recent codebase trajectory shows a clear strategy: aggressively integrate with leading, scalable networks like Bitcoin and Polygon while pruning support from legacy chains to optimize security and efficiency. This dual approach of expansion and consolidation strengthens USDT's infrastructure as the dominant stablecoin. How will the successful deployment on Bitcoin's RGB protocol influence its adoption in traditional finance?