The RGB Protocol has launched on the Bitcoin mainnet, enabling tokenized assets like stablecoins, non-fungible tokens (NFTs) and custom tokens within the Bitcoin ecosystem . The protocol announced that tokenization tools allowing users to create, send and manage digital assets on Bitcoin and the Lightning Network were now available .
RGB is an open-source protocol designed to expand Bitcoin's capabilities without changing its original design . RGB allows users to create smart contracts, issue and manage custom tokens, boost scalability, privacy, and flexibility, and use the Lightning Network for instant transactions . The protocol 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 .
Boosty Labs founder and CEO Viktor Ihnatiuk said that Tether's USDT will be RGB's first real-world use case for confidential, scalable stablecoin transfers on Bitcoin . USDT users will enjoy fast and cheap transfers directly on Bitcoin because of the compatibility with the Lightning Network . There is no need to use other chains with their own trust trade-offs .
RGB allows you to build any DeFi logic on top, leveraging its VM possibilities, that could be even compatible with EVM . So any use cases we know in Ethereum, Solana, DeFi can be built now natively on Bitcoin . RGB's advantage over other chains lies in being directly on Bitcoin, which allows it to leverage Bitcoin's security . The client-side validation model also brings privacy by having data off-chain .
RGB uses Bitcoin for final settlement and security . All logic and contract data are processed on the user's device (client-side validation) . It's built on a DAG structure (Directed Acyclic Graph), allowing faster, scalable data flow . It requires no changes to Bitcoin's core protocol .
RGB can interact with the Lightning Network through the Bifrost extension to achieve near-instant settlement without waiting for new Bitcoin blocks to be mined . By connecting token-specific payment channels to the Lightning Network, RGB assets can provide the same user experience and security prerequisites as regular payments on the Lightning Network . This enables low-cost, fast and stable payments and can benefit the entire ecosystem, including users, developers and Lightning node operators .