Bitcoin has long served a simple purpose: storing and transferring value. The blockchain’s inherent limitations in scalability and programmability prevented use cases like high-frequency payments and smart contracts.
Launched in 2018, the layer-2 solution Lightning Network introduced noticeable improvements in scalability. It takes some of the burden offchain by creating side channels between the sender and receiver.
The model settles transactions faster, with lower fees. Rendering Bitcoin feasible for daily use, the solution spurred the development of many payment apps on the blockchain.
Programmability also arrived in Bitcoin through secondary protocols, such as RGB, an open-source solution designed to expand Bitcoin’s capabilities. The protocol enables the creation of smart contracts and other digital assets on Bitcoin through private, offchain transactions.
RGB powers decentralized applications (DApps) and tokenization, and allows digital assets other than Bitcoin (BTC) to exist on top of the original blockchain.
Bitcoin-native USDT transactions
CTDG Dev Hub, a collaborative platform for blockchain developers working on protocol ideas, has added Utexo as a new participant. The project examines how stablecoin transfers could be represented natively on Bitcoin by combining the Lightning Network’s payment channels with RGB’s client-side asset model. By focusing on interoperability between Bitcoin’s scaling and asset layers, Utexo aligns with DevHub’s goal of supporting experimental infrastructure research and practical developer-driven use cases.
Before the introduction of native solutions, the prevailing practice for using USDT on Bitcoin was utilizing methods like wrapping and bridging, which add intermediaries to the process and increase security risks.
Utexo moves USDT on Bitcoin-native rails instead by combining Lightning’s payment flow with RGB’s asset transfer model. Through RGB, USDT is issued and transferred under a client-side validation model, which keeps most of the transaction details off Bitcoin’s base layer.
Meanwhile, the Lightning Network enables fast and low-cost execution. Bitcoin’s layer-1 only serves as the security anchor that ultimately settles transactions and prevents double-spending.
That combination is meant to avoid the extra trust assumptions that come with wrapping and bridging while still keeping the experience fast. In other words, speed comes from Lightning, asset logic comes from RGB and the security stays tied to Bitcoin.
In Utexo’s design, separating execution from base-layer congestion can make cost behavior less sensitive to Bitcoin’s mempool conditions, since most activity occurs off-chain and Bitcoin is used only for final settlement. This structural decoupling is one reason some implementations aim for more stable cost behavior as throughput grows.
Utilizing the Lightning Network or RGB normally requires a good amount of manual labor. Users have to set up and run a Lightning node, open and manage channels, ensure liquidity, handle routing failures and monitor payment status.
On the RGB side, they also need to manage issuance and transfers, exchange the data needed for client-side validation and keep track of state so balances remain accurate.
The project brings these steps into a single integration flow available via an SDK and REST API. It exposes programmatic access to Lightning execution, routing and failure handling, as well as RGB asset issuance, transfers and state transitions, enabling interaction with both layers through one interface.
Bitcoin developers gain a hub
Cointelegraph has been taking an active role in blockchain governance and development through its initiative, Cointelegraph Decentralization Guardians.
As part of the CTDG ecosystem, CTDG Dev Hub serves as a developer-focused hub alongside CTDG’s validator operations and educational initiatives. The hub offers an open, global public space for developers and other members of the blockchain community to exchange ideas, develop solutions, and submit proposals.
Through its participation in CTDG Dev Hub, Utexo becomes part of a shared development environment where its approach can be reviewed and discussed by other contributors. The Dev Hub serves as a coordination point for developers and community members exploring infrastructure and tooling for Bitcoin-based applications.

