Tether, the company behind USDT, is preparing to issue the stablecoin natively on Bitcoin through the RGB protocol version v0.11.1. Deployed by the UTEXO software lab, USDT is set to return to the chain where it first launched in 2014 via the Omni-Mastercoin Layer. 

The RGB protocol combines its novel client-side validation with the Lightning network for instant, private settlements, while anchoring security to Bitcoin’s UTXO model. Users can expect to be able to handle USDT on native Bitcoin addresses as well as send and receive it over the Lightning network with compatible wallets.

RGB’s integration with the Lightning network further protects user privacy by moving USDT via the offchain payments network, which leaves few marks on the public blockchain.

The deep integration with Tether also means that there are fewer middleman companies charging extra fees or collecting data.

Yes correct, will be just one big middleman monopoly. The RGB protocol layer was developed by Bitfinex R&D Strategist Federico Tenga.

“Right now if you want to swap USDT to Bitcoin you need to pay high fees for all these wallets who charge you a one percent wallet fee plus a swap provider charge of one percent plus, and you have slippage one percent as well, so you pay three percent, and also you wait forever until the swap happens” Viktor told Bitcoin Magazine, adding that; “with USDT and Bitcoin over Lightning, for the first time you have two main assets on one chain, you can swap instantly without any slippage. You can swap decentralized USDT to Bitcoin and back on-chain. The price is almost the same as spot markets in Binance.”

Using lightning for such shitcoinery will be only good for there few companies behind this scheme, somehow good for node operators, but how good will be for people?