What you can build
on RGB Protocol on Bitcoin.
These are the main RGB Protocol on Bitcoin use cases — from stablecoins on Lightning to tokenized real-world assets, built directly on Bitcoin, without bridges, validators, or new blockchains
Stablecoins
native to Bitcoin Lightning.
RGB Protocol on Bitcoin enables stablecoins that transfer natively over the Lightning Network — instant settlement, near-zero fees, no custodian, no bridge. The full value of Lightning speed applied to dollar-denominated assets.
Unlike wrapped tokens or custodial solutions, RGB stablecoins inherit Bitcoin’s censorship resistance and security model. The issuer defines supply and redemption rules via the IFA (Inflatable Fungible Asset) schema — everything else is client-side validated, private between the parties of each transfer.
For the first time, stablecoins can settle at Lightning speed without leaving Bitcoin’s security model — no sidechain, no bridge, no additional validator set.
Stablecoin transfer over Lightning
Issuance — Issuer creates a stablecoin as an RGB IFA asset on Bitcoin. Supply defined at genesis, inflation rights retained by issuer.
Channel funding — Alice opens an RGB Lightning channel with stablecoin balance + minimal sats for channel operation.
Instant transfer — Alice sends stablecoins to Bob in milliseconds via Lightning HTLC. RGB state transition committed in the channel update.
Settlement — Bob closes channel, RGB assets settle on-chain. All data stays private — only the commitment touches Bitcoin.
Why RGB tokens are different
– All balances on-chain, public
– Every node stores all transfers
– Gas fees per transaction
– Smart contract bugs = public exploit
– No Lightning integration
– Balances private, off-chain
– Each party holds their own history
– Near-zero fees over Lightning
– Validation ≠ ownership — no state exposure
– Native Lightning transfers
Fungible tokens with
fixed or flexible supply.
RGB Protocol on Bitcoin supports two main fungible token schemas. NIA (Non-Inflatable Asset) for fixed-supply tokens — total supply defined at genesis, cannot be increased. IFA (Inflatable Fungible Asset) for tokens with controlled secondary issuance — the issuer retains inflation rights up to a defined cap.
Unlike ERC-20 tokens, RGB fungible tokens store no data on-chain. All ownership and transfer history is private between parties. The token can be transferred instantly over Lightning or settled on-chain — no gas, no mempool competition.
The separation between validation and ownership — one of RGB’s core architectural features as documented in docs.rgb.info — means that anyone can verify a transfer is valid without seeing the contract state. Privacy and verifiability coexist.
Bitcoin-native NFTs
with real privacy.
RGB Protocol on Bitcoin supports unique digital assets via the UDA (Unique Digital Asset) schema. Each UDA can embed media directly in the contract (up to ~64KiB) or attach larger media via hash digest — meaning the media integrity is verifiable without requiring any specific server or platform.
Unlike Ordinals or other Bitcoin NFT approaches, RGB NFTs store no asset data on-chain. Ownership history is private between the parties of each transfer. The Bitcoin blockchain stores only the cryptographic commitment — no image data, no metadata, nothing traceable to the asset.
The CFA (Collectible Fungible Asset) schema extends this with fungible collectibles — tokens that carry a collectible identity alongside their divisible value, enabling new types of semi-fungible assets.
What a RGB NFT can include
Embedded media — up to ~64KiB of any media type directly in the contract binary. Images, audio snippets, documents.
External attachments — hash digests of large files (HD images, video, audio). The hash proves integrity without on-chain storage.
Proof of reserves — a Bitcoin outpoint paired with a binary proof, usable to show that tokens are backed by on-chain collateral.
Private transfer history — ownership changes never touch the blockchain. Only the parties in each transfer see the history.
Key properties for tokenization
Permissioned transfers — PFA schema requires issuer signature per transfer. Legal compliance enforced cryptographically, not contractually.
Privacy — ownership history stays private. No public record of who holds what — critical for institutional participants.
Bitcoin finality — settlement inherits Bitcoin’s proof-of-work security. No bridge, no validator set, no additional trust assumption.
Lightning settlement — asset transfers can settle instantly over Lightning. Combines finality with speed.
Tokenize real-world assets
on Bitcoin.
Real-world assets (RWA) — real estate, commodities, securities, receivables — can be tokenized as RGB assets on Bitcoin. The PFA (Permissioned Fungible Asset) schema is specifically designed for regulated assets: every transfer requires an explicit signature from the issuer, enabling compliance with transfer restrictions.
The combination of client-side validation (private ownership history) and single-use seals (Bitcoin-level finality) provides the legal and technical properties needed for institutional-grade tokenization — without the custodial risks of existing tokenization platforms built on permissioned blockchains.
Infrastructure providers like Orbis1 and Utexo are building the payment and settlement rails that make RWA tokenization on RGB practical for businesses from day one.
Self-sovereign identity
anchored to Bitcoin.
RGB Protocol on Bitcoin’s Schema system supports arbitrary state structures — not just financial assets. This enables decentralized identity systems where verifiable credentials are bound to Bitcoin UTXOs.
A credential issuer — a government, institution, or decentralized authority — can issue an RGB contract representing an identity attribute (citizenship, professional license, age verification). The credential holder controls it via their UTXO. No registry, no custodian, no on-chain trace of personal data.
The separation between validation and ownership documented in docs.rgb.info is particularly powerful here: a verifier can confirm that a credential is valid without seeing the full credential history or the holder’s other assets. Selective disclosure by design.
Self-sovereign vs registry-based
– Stored in centralized registry
– Institution controls your credentials
– Verifier sees full profile
– Revocation requires custodian
– Single point of failure
– Held in RGB contract, UTXO-bound
– You control your credentials
– Selective disclosure to verifiers
– Revocation via seal closing
– Bitcoin security model
What’s already being built
Atomic swaps — trustless exchange of RGB assets over Lightning, without custodians. KaleidoSwap is live on mainnet.
Lightning liquidity — RGB asset channels can be routed through the existing Lightning Network using edge nodes and HTLCs.
Stablecoin markets — RGB stablecoins (USDT via Tether, others) as base collateral for lending and yield instruments.
Proof of publication — RGB contracts as timestamping primitives for financial agreements, audits, and compliance records.
Decentralized finance,
without leaving Bitcoin.
RGB Protocol on Bitcoin enables the building blocks of decentralized finance natively on Bitcoin — without bridges, without sidechains, and without the security trade-offs of other approaches.
Decentralized exchanges like KaleidoSwap and LNFI Network are building atomic swap markets for RGB assets over Lightning. Lending protocols can use PFA assets with transfer restrictions to enforce collateral conditions. Yield instruments can be structured as IFA assets with controlled inflation representing interest payments.
Unlike Ethereum DeFi, where smart contract state is public and exploitable, RGB’s Validation ≠ Ownership paradigm prevents the class of attacks where publicly accessible contract state enables exploits. As documented in docs.rgb.info, this separation is one of RGB’s most important security properties.
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RGB Protocol on Bitcoin?
Explore RGB Protocol on Bitcoin use cases.