What is expected in the development of USDT?
Tether USDt’s roadmap is focused on growing its connection with Bitcoin, hosting key industry events, and expanding its global reach.
- RGB Protocol Integration (August 28, 2025) – Launching USD₮ on Bitcoin using the RGB protocol to enable private and scalable transactions.
- Plan ₿ Forum (October 24–25, 2025) – Bringing together global leaders to discuss Bitcoin, stablecoins, and decentralized technologies.
- Bit2Me Expansion (Q3 2025) – Leading a €30 million funding round to strengthen presence in Spanish-speaking markets.
- U.S. Regulatory Strategy (2025) – Preparing to comply with the GENIUS Act and considering a new stablecoin tailored for U.S. regulations.
Deep Dive
1. RGB Protocol Integration (August 28, 2025)
Overview: Tether is launching USD₮ on the RGB protocol, which operates on top of Bitcoin. RGB allows for private and scalable transactions, meaning users can send USD₮ with more privacy and efficiency directly on the Bitcoin network. This move aims to expand Bitcoin’s role beyond just being a store of value by enabling stablecoin transactions on its blockchain. The RGB mainnet went live in August 2025, and Tether’s integration takes advantage of its privacy features and off-chain transaction processing (Tether News).
What this means: This is a positive development for USD₮ because it combines Bitcoin’s security with new use cases like small payments. However, there may be challenges as users and businesses adapt to these new Bitcoin-based financial tools.
2. Plan ₿ Forum (October 24–25, 2025)
Overview: Tether’s annual Plan ₿ Forum, held in Lugano, Switzerland, gathers experts and leaders to discuss Bitcoin adoption, decentralized finance (DeFi), and policy issues. Last year’s event attracted over 2,900 attendees. This year, the forum will highlight partnerships with companies like Rumble and Twenty One Capital (Tether News).
What this means: While this event may not directly impact USD₮’s price, it strengthens Tether’s influence in the crypto ecosystem. It could lead to new partnerships and help shape regulatory conversations, though results may take time to materialize.
3. Bit2Me Expansion (Q3 2025)
Overview: Tether has acquired a minority stake in Bit2Me, a leading cryptocurrency platform in Spain. Tether is also leading a €30 million funding round to help Bit2Me grow its presence in Latin America and Europe. The funding round is expected to close by September 2025 (Tether News).
What this means: This move supports wider adoption of USD₮ in markets that are still developing their crypto infrastructure. The success of this expansion depends on Bit2Me’s execution and how clear regulations become in these regions.
4. U.S. Regulatory Strategy (2025)
Overview: Tether has brought on Bo Hines, a former White House advisor, to help navigate U.S. cryptocurrency regulations. This is part of Tether’s preparation for the GENIUS Act, a proposed law requiring stablecoins to be backed 100% by cash or U.S. Treasury bills—a standard Tether already claims to meet. Tether is also considering launching a U.S.-specific stablecoin to comply with these rules (CoinMarketCap News).
What this means: Increased regulatory scrutiny in the U.S. could create short-term challenges for Tether. However, successfully meeting these regulations could build greater trust with institutions and support long-term growth.
Conclusion
Tether is focusing on integrating more deeply with Bitcoin, preparing for regulatory changes, and expanding into new markets. The launch on the RGB protocol and alignment with the GENIUS Act could change how USD₮ is used in both decentralized and traditional finance. With events like the Plan ₿ Forum and investments like Bit2Me, Tether aims to connect crypto innovation with real-world adoption.
How will Tether balance its established role as a liquidity leader with the technical demands of RGB and evolving regulatory pressures?
What updates are there in the USDT code base?
Tether is updating its technology by adding new blockchain features, improving infrastructure, and phasing out older blockchains.
- Ending Support for Older Blockchains (August 29, 2025) – USDT will no longer be supported on Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand.
- Adding RGB Protocol on Bitcoin (August 28, 2025) – USDT will be available on Bitcoin’s RGB layer, allowing private and scalable asset management.
- Upgrading Wallet Development Kit with Lightning Network (August 14, 2025) – The Wallet Development Kit now supports Lightning for faster and cheaper USDT transactions.
Deep Dive
1. Ending Support for Older Blockchains (August 29, 2025)
What’s happening: Tether will stop supporting USDT on five older blockchains by late August 2025. This means users won’t be able to redeem or move USDT on these chains after that date.
Currently, less than 0.1% of all USDT (out of $168 billion total supply) is on these older blockchains. For example, Omni, the original blockchain for USDT since 2014, only holds $82 million out of $888 million issued. By focusing on more active blockchains like Tron and Ethereum, Tether aims to reduce costs and improve efficiency.
What this means for you: If you hold USDT on any of these older blockchains, you’ll need to move your tokens before the deadline to avoid losing access. This change won’t affect the overall availability or liquidity of USDT. (Source)
2. Adding RGB Protocol on Bitcoin (August 28, 2025)
What’s happening: USDT will be launched on RGB, a new layer built on top of Bitcoin. RGB allows private and scalable transactions by handling most activity off the main Bitcoin blockchain, while still using Bitcoin’s security to confirm ownership.
This setup avoids overloading Bitcoin’s main network and supports more complex smart contracts, which are programmable agreements that can automate transactions. Tether plans to use this to enable new use cases like small payments and other financial services.
What this means for you: This is a positive step for USDT because it strengthens its connection to Bitcoin’s network and could open up new opportunities for decentralized finance (DeFi) and institutional users. (Source)
3. Upgrading Wallet Development Kit with Lightning Network (August 14, 2025)
What’s happening: Tether’s Wallet Development Kit (WDK) now includes support for the Lightning Network through Lightspark’s technology. The Lightning Network is a Bitcoin layer that enables instant and low-cost transactions.
Developers can now create wallets that let users send USDT quickly and cheaply, with features like managing liquidity and swapping assets without relying on centralized payment systems.
What this means for you: This upgrade makes USDT more useful for everyday payments and international transfers, helping it compete with traditional financial services. (Source)
Conclusion
Tether is focusing on making USDT more scalable and efficient by integrating with Bitcoin-based technologies like RGB and Lightning, while phasing out older blockchains. These changes support USDT’s role as a leading stablecoin for transactions and align with regulatory preferences for transparent and auditable blockchains.
Will Bitcoin’s growing role in USDT’s infrastructure boost its appeal as competition from central bank digital currencies (CBDCs) increases?
What could affect the price of USDT?
Tether’s stablecoin peg is under pressure from new regulations, reserve management concerns, and competition in the market.
- Regulatory Scrutiny – The U.S. GENIUS Act requires full reserve transparency, which could limit USDT’s access to U.S. markets.
- Reserve Management – Tether’s $127 billion in Treasury holdings face audit gaps, raising questions about trust.
- Market Competition – USDT’s 62% market share is challenged by USDC’s regulatory compliance and growing adoption.
Deep Dive
1. Regulatory Pressure (Negative Impact)
Overview:
The U.S. passed the GENIUS Act in July 2025, which requires stablecoin issuers to keep 100% of their reserves in cash or short-term U.S. Treasuries and to undergo annual audits. Tether currently holds assets like Bitcoin ($8.6 billion) and gold (about 12% of reserves as of Q2 2025), which may not meet these new rules. If Tether doesn’t adjust, it could face restrictions in the U.S., similar to how some stablecoins were delisted in Europe under MiCA regulations.
What this means:
If Tether fails to comply, it risks losing access to the U.S., the world’s largest financial market. This could lead to users redeeming their USDT tokens quickly. Although Tether is based in El Salvador, this offers limited protection because global exchanges might restrict USDT trading pairs to avoid regulatory issues (GENIUS Act).
2. Reserve Transparency & Trust (Mixed Impact)
Overview:
Tether reports holding $127 billion in U.S. Treasuries as of Q2 2025, but it has never completed a full independent audit. Recently, Tether minted $2 billion USDT on the Tron network, raising concerns about whether reserves fully back these new tokens during times of market stress.
What this means:
Tether’s strong profits ($4.9 billion net profit in Q2 2025) help maintain short-term stability. However, ongoing delays in completing audits create doubt among institutional investors. If a reserve shortfall were revealed, it could cause USDT to lose its $1 peg, similar to what happened briefly in March 2023 when USDC’s instability affected USDT (Tether Q2 Report).
3. Competitive Landscape (Negative Impact)
Overview:
USDC complies with MiCA regulations and Circle, its issuer, holds banking licenses, giving it an edge over Tether’s regulatory challenges. USDC now supports 25% of Bitcoin liquidity depth, up from 15% in 2023. Additionally, 1Money’s 34 U.S. licenses show growing institutional alternatives to USDT.
What this means:
Regulated stablecoins like USDC could reduce USDT’s dominance in crypto derivatives trading (USDT accounts for 50% of the $1.14 trillion daily crypto volume) and cross-border payments. Tether’s focus on emerging markets, such as Bit2Me’s recent €30 million funding, may help offset some losses but limits its ability to charge premium prices (Chainalysis).
Conclusion
USDT’s ability to maintain its $1 peg depends on how well it navigates U.S. regulations, maintains trust in its reserves, and competes with more compliant stablecoins. While its large daily trading volume ($127 billion) offers short-term strength, significant risks remain. Will Tether’s Bitcoin holdings become a liability or a smart diversification under stricter rules? Keep an eye on upcoming Q3 reserve reports and the enforcement timeline of the GENIUS Act.
What are people saying about USDT?
Tether’s ongoing interactions with regulators and large investors are keeping the cryptocurrency market alert. Here’s the latest:
- Regulatory challenges – EU exchanges removing USDT raise concerns
- Market dynamics – Technical signals point to potential gains for alternative cryptocurrencies (altcoins)
- Large-scale minting – Over $1 billion in new USDT issued monthly boosts market confidence
Deep Dive
1. Regulatory pressure in Europe signals bearish outlook
According to @Chain Mind, Tether has refused to comply with the EU’s MiCA regulations. As a result, major exchanges like Binance and Kraken have removed USDT from their European listings.
What this means: This is a negative sign for USDT’s adoption in Europe, especially as competitors like USDC, which comply with MiCA, gain popularity.
2. Mixed signals from market dominance trends
@Web3Niels points out that while Tether’s market capitalization is increasing, a drop in USDT’s dominance could lead to billions flowing into Bitcoin and altcoins.
What this means: The situation is mixed. Growth in stablecoins like USDT can support overall crypto market liquidity, but a decline in USDT’s market share might indicate investors are shifting toward riskier assets like altcoins.
3. Large monthly USDT minting suggests bullish market sentiment
@Tether_to reports that Tether minted 6 billion USDT in July alone.
What this means: This is a positive sign for market liquidity. Large-scale minting often signals increased demand from institutional investors. However, some critics remain concerned about transparency.
Conclusion
The outlook for Tether USDt (USDT) is mixed, balancing regulatory challenges with growing institutional use. While European delistings and audit questions pose risks, record-breaking minting and technical market indicators show USDT continues to be a key source of liquidity in crypto. Keep an eye on the 4.0% USDT dominance level—if it falls below this, altcoins could see rapid growth; if it holds, stablecoin demand may remain strong.
What is the latest news about USDT?
Tether is making strategic changes and adapting to new regulations while expanding its technical capabilities. Here are the key updates:
- Ending Support for Certain Blockchains (July 12, 2025) – USDT will no longer be supported on five blockchains with low activity.
- Regulatory Changes in Europe (June 24, 2025) – New EU rules have led to USDT being removed from some exchanges, pushing users toward compliant alternatives.
- USDT Now Works on Bitcoin (August 28, 2025) – USDT can now be transferred using Bitcoin’s RGB protocol, improving transaction efficiency.
In-Depth Look
1. Ending Support for Certain Blockchains (July 12, 2025)
What happened:
Starting September 1, 2025, Tether stopped issuing USDT on five blockchains: Omni, Bitcoin Cash SLP, Kusama, EOS, and Algorand. Any remaining USDT on these chains will be frozen. These blockchains represent less than 0.1% of the total USDT supply, which is $168 billion. Most USDT is used on Ethereum ($74 billion) and Tron ($81 billion).
What this means for you:
This change is mostly neutral. It shows Tether is focusing on blockchains where USDT is most actively used. If you hold USDT on these less active chains, you’ll need to move your tokens. However, since these chains have very little USDT, there’s little risk to overall liquidity. (The Block)
2. Regulatory Changes in Europe (June 24, 2025)
What happened:
Due to new EU regulations called MiCA, major exchanges like Binance and Kraken stopped offering USDT trading to European users starting in March 2025. Other stablecoins like USDC and EUROC have become popular compliant options. However, USDT is still available on exchanges outside the EU.
What this means for you:
This is a setback for USDT’s market share in Europe but doesn’t affect its global use much. In fact, regions like Asia-Pacific and Latin America account for 69% of the $2.36 trillion stablecoin trading volume in 2025. (CoinMarketCap)
3. USDT Now Works on Bitcoin (August 28, 2025)
What happened:
Tether has enabled USDT transfers on the Bitcoin network using the RGB protocol. This allows for cheaper and faster transactions without relying on additional layers or intermediaries. This follows earlier integration with Bitcoin’s Lightning Network, further expanding USDT’s usability on Bitcoin.
What this means for you:
This is a positive development for USDT. It combines Bitcoin’s strong security with improved transaction speed and cost. Developers believe this could reduce dependence on Ethereum and Tron for large institutional users. (CryptoSavingExp)
Conclusion
Tether is balancing the phase-out of less-used blockchains, adapting to regulatory changes, and innovating with Bitcoin technology to stay ahead. With 90% of surveyed businesses exploring stablecoins, USDT’s ongoing compliance and technical improvements will be key to maintaining its $168 billion market lead against competitors like EURC and PYUSD.