Smart contract and asset issuance system RGB Protocol said it had launched on the Bitcoin mainnet, enabling tokenized assets like stablecoins, non-fungible tokens (NFTs) and custom tokens within the Bitcoin ecosystem.
On Thursday, the protocol announced that tokenization tools allowing users to create, send and manage digital assets on Bitcoin and the Lightning Network were available.
The protocol said it enables new tokenization functions on top of the network, while preserving its principles of decentralization, privacy and self-custody.
RGB uses client-side validation, which means that asset data is processed and verified by the user. This keeps asset activity offchain while anchoring proofs to Bitcoin transactions, allowing privacy preservation and minimizing blockchain bloat.
RGB protocol to bring USDT to Bitcoin
Boosty Labs founder and CEO Viktor Ihnatiuk told Cointelegraph that Tether’s USDT will be RGB’s first real-world use case for confidential, scalable stablecoin transfers on Bitcoin.
When asked what this meant for USDT users, Ihnatiuk said they will enjoy fast and cheap transfers directly on Bitcoin because of the compatibility with the Lightning Network. “No need to use other chains with their own trust trade-offs,” Ihnatiuk told Cointelegraph.
Ihnatiuk also said that existing RGB projects want to integrate Tether (USDT) on Bitcoin once it becomes available.
He added that Lightning-based atomic swaps will also allow for decentralized trading functionalities.
“RGB allows you to build any DeFi logic on top, leveraging its VM possibilities, that could be even compatible with EVM,” Ihnatiuk told Cointelegraph. “So any use cases we know in Ethereum, Solana, DeFi can be built now natively on Bitcoin.”
Ihnatiuk also told Cointelegraph that RGB’s advantage over other chains lies in being directly on Bitcoin, which allows it to leverage Bitcoin’s security.
He said that the client-side validation model also brings privacy by having transaction data that is not visible onchain.
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RGB Protocol Association to support the ecosystem with grants
With the launch, prominent crypto organizations formed the RGB Protocol Association to coordinate and promote the development and adoption of RGB through education and funding.
“Founding members include Bitfinex, Plan B Network, ThunderStack, Boosty Labs, Bitmask by Diba, Fulgur Ventures, LNFI, Kaleidoswap and Tribe RGB,” Ihnatiuk told Cointelegraph.
He said the association will provide grants, sponsorships and educational initiatives to support the RGB ecosystem and promote innovation for Bitcoin.
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