Tether to issue USDT on RGB, bringing stablecoin natively to Bitcoin

[BitGoba]

Tether announced in a Thursday press release its plan to issue USDT on the RGB protocol, enabling native stablecoin issuance atop Bitcoin.

https://finance.yahoo.com/news/tether-issue-usdt-rgb-bringing-143350125.html

I had never heard of the RGB protocol before, but from what I’ve researched it looks like some kind of zero-knowledge proofs Layer 2

Does anyone have more info on this?

[Charles-Tim]

If you want to know more about what Really Good Bitcoin (RGB) is, you can read this news about the USDT that will be issued on RGB: https://www.ccn.com/news/crypto/usdt-on-bitcoin-tether-embraces-rgb

RGB, which stands for “Really Good Bitcoin,” is a smart contract platform that uses the Bitcoin Lightning Network as a settlement layer.

Instead of being a separate blockchain like Rootstock or Liquid, RGB uses client-side validation.

Most of the transaction data, like token rules, transfers, and ownership proofs, is kept off-chain with the users. However, to anchor security, RGB places small cryptographic commitments inside Bitcoin transactions. For USDT, these commitments essentially function as immutable transaction receipts.

This will really be a good development. The transaction fee will likely also be very cheap.

[BitGoba]

If you want to know more about what Really Good Bitcoin (RGB) is, you can read this news about the USDT that will be issued on RGB: https://www.ccn.com/news/crypto/usdt-on-bitcoin-tether-embraces-rgb

RGB, which stands for “Really Good Bitcoin,” is a smart contract platform that uses the Bitcoin Lightning Network as a settlement layer.

Instead of being a separate blockchain like Rootstock or Liquid, RGB uses client-side validation.

Most of the transaction data, like token rules, transfers, and ownership proofs, is kept off-chain with the users. However, to anchor security, RGB places small cryptographic commitments inside Bitcoin transactions. For USDT, these commitments essentially function as immutable transaction receipts.

This will really be a good development. The transaction fee will likely also be very cheap.

I googled this RGB protocol, and from what I understand, sending USDT on RGB will be completely private and the token cannot be frozen like USDT on Ethereum or Tron. Transactions on RGB are free. RGB tokens are trustless, but you need to run your own RGB and Bitcoin full node. These advantages . privacy, trustless, and no token freezing . will attract a huge number of USDT users. If they want trustless USDT, they must run their own RGB node and Bitcoin full node. When the issuer mints tokens or settlement occurs, the fee is paid in Bitcoin, just like on Lightning when channels are opened and closed.

[Dogedegen]

The real question is how many normal Bitcoin users are using RGB? I have not even encountered a wallet that supports it and wouldn't know how to use it myself.

I googled this RGB protocol, and from what I understand, sending USDT on RGB will be completely private and the token cannot be frozen like USDT on Ethereum or Tron.

Somehow I doubt this last part. Do you have a source? The key feature that stablecoin issues love is being able to freeze the token when they want to.

[Perfectbaby]

The real question is how many normal Bitcoin users are using RGB? I have not even encountered a wallet that supports it and wouldn't know how to use it myself.

I googled this RGB protocol, and from what I understand, sending USDT on RGB will be completely private and the token cannot be frozen like USDT on Ethereum or Tron.

Somehow I doubt this last part. Do you have a source? The key feature that stablecoin issues love is being able to freeze the token when they want to.

Yes could doubt but from experience I dont think is something to benying of instead of waiting till you respond.

[Dogedegen]

The real question is how many normal Bitcoin users are using RGB? I have not even encountered a wallet that supports it and wouldn't know how to use it myself.

I googled this RGB protocol, and from what I understand, sending USDT on RGB will be completely private and the token cannot be frozen like USDT on Ethereum or Tron.

Somehow I doubt this last part. Do you have a source? The key feature that stablecoin issues love is being able to freeze the token when they want to.

Yes could doubt but from experience I dont think is something to benying of instead of waiting till you respond.

What you wrote does not make any sense in English. I have reasonable doubt because they use this feature on all blockchains where they operate. I asked for a source, I don't need a lecture on doubting.

[TastyChillySauce00]

I googled this RGB protocol, and from what I understand, sending USDT on RGB will be completely private and the token cannot be frozen like USDT on Ethereum or Tron. Transactions on RGB are free. RGB tokens are trustless, but you need to run your own RGB and Bitcoin full node. These advantages . privacy, trustless, and no token freezing . will attract a huge number of USDT users. If they want trustless USDT, they must run their own RGB node and Bitcoin full node. When the issuer mints tokens or settlement occurs, the fee is paid in Bitcoin, just like on Lightning when channels are opened and closed.

The last part isn't true, tether can enforce blacklist on the contract level.
RBG is just a contract functionality that lives on top of Lightning network (btc layer 2) so the contract maker can definitely make some censorship or blacklist at that level.

Trust me with the genius ACT tether isn't in any way releasing decentralized stablecoin.

[adultcrypto]

I had long waited for more developments on bitcoin Lightning Network, I guess we are closer to that point than ever and this will solve the issue of high network fees, volatility and make the Lightning Network easier to use unlike what we have at the moment that is too technical for a beginner to use. This will definitely come with its challenges but with time those will be addressed and improved. I can only imagine what opportunities awaits us when this is fully developed.

[NotATether]

That's funny because didn't they retire Omni very recently?

I don't understand why they would want to put a stablecoin on the Bitcoin network after they have done that.

[BitGoba]

Somehow I doubt this last part. Do you have a source? The key feature that stablecoin issues love is being able to freeze the token when they want to.

I have to admit that I’m not technically competent, but I read that ownership of RGB tokens is tied to Bitcoin UTXOs, so I concluded that they cannot be frozen unilaterally. If anyone with technical expertise could explain, it would be interesting to

[pooya87]

enabling native stablecoin issuance atop Bitcoin.

To be fair, Tether itself started "atop Bitcoin" as an Omni Layer token and it was only later that it expanded to other blockchains and it was because you can't actually enforce any of its scripts on Bitcoin (it is not part of the Bitcoin protocol) but you can do it on an actual token creation platform.

So in short they are not "enabling" anything new on top of bitcoin.
Also what they are creating is not "native" to Bitcoin, since it is still happening elsewhere and is not part of Bitcoin protocol.