Utexo Launches USDT on Bitcoin Network
In a significant move, Utexo is set to launch USDT on the Bitcoin network this October, introducing a suite of services intended for private transfers, direct BTC exchanges, and Bitcoin-collateralized lending options. Viktor Ihnatiuk, co-founder of Utexo, confirmed that the company has acquired a commercial license to issue USDT on Bitcoin, which will enable them to utilize the Tether trademark in partnerships with exchanges, wallet providers, and payment processors.
Engaging Developers and Future Expansions
This initiative plans to engage developers by providing essential software tools and cloud-based services that businesses can leverage to create Bitcoin-centric USDT products. Initially, Utexo will harness the Bitcoin mainnet for its launch, with future expansions expected to integrate Bitcoin’s Lightning Network, which facilitates faster transactions.
Key Features of Utexo’s Offering
A standout feature of Utexo’s offering is its use of RGB technology for stablecoin transactions, allowing users to verify their transaction data independently while ensuring ownership is linked to Bitcoin’s unspent transaction outputs. Notably, the majority of payment details will remain confidential and separate from Bitcoin’s public ledger.
The Utexo services aim to cater to users seeking anonymity in their USDT transactions, facilitate conversions between native BTC and USDT without involving traditional exchanges, and enable borrowing against Bitcoin holdings while retaining ownership on the original network. This lending model distinguishes itself by permitting loans that utilize native Bitcoin as collateral without necessitating conversions to wrapped tokens on alternative blockchains.
Market Engagement and Compliance
Ihnatiuk noted that Utexo’s deployment of these services is poised to cater to over 450 interested entities, including various exchanges and wallet providers, though no official partnerships have been publicly confirmed yet, including talks with larger financial institutions.
A crucial aspect of Utexo’s operational framework involves creating a blacklist of transaction outputs linked to illicit activities, which will be shared with relevant service providers to improve compliance. Unlike Ethereum’s mechanism of freezing addresses, Ihnatiuk clarified that Utexo cannot leverage similar restrictions within the Bitcoin framework; instead, flagged outputs would be rendered unusable through specific interfaces associated with redeeming or transferring those assets across networks.
Funding and Future Plans
In a previous report covering Utexo, crypto.news disclosed that in March, the company secured $7.5 million in seed funding led by Tether along with Big Brain Holdings and Portal Ventures. This financing positions Utexo to serve as a vital provisioner of settlement infrastructure for various payment providers, as well as exchanges and trading entities, supporting them in managing cross-border transactions, payouts, and merchant payments. They aim to provide their clients with predictable transaction costs by allowing fees to be calculated ahead of time and paid in USDT.
Broader Context in Stablecoin Issuance
Lastly, this isn’t Utexo’s first significant announcement. In August 2025, Tether outlined its aspirations to deploy RGB on the Bitcoin network, marking a resurgence of USDT within the Bitcoin ecosystem. While Utexo is focused on its October rollout, Anchorage Digital is following a separate issuance strategy for its USAT token, exploring interoperability solutions that will connect bank-issued stablecoins to diverse blockchain environments. In a recent development, Anchorage has partnered with LayerZero to facilitate these connections, including future plans to bridge networks like Solana and Ethereum, further emphasizing the evolving landscape of stablecoin issuance and cross-chain functionalities.
