Utexo, an infrastructure company backed by Tether, has set October as the month it plans to start issuing USDT on Bitcoin, according to Cointribune. The deployment relies on the RGB protocol and is aimed at exchanges, wallets and payment providers rather than at retail users directly, and no specific launch date has been announced.
Cointribune reported that Utexo says it holds a commercial license allowing it to use the Tether brand and offer the infrastructure. Co-founder Viktor Ihnatiuk said the goal is to make USDT as accessible on Bitcoin as it already is on other blockchains. Tether chief executive Paolo Ardoino framed the move in a short phrase about USDT coming home.
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Key facts
- Utexo plans to begin issuing USDT on Bitcoin during October, with no fixed date disclosed, according to Cointribune.
- The launch uses the RGB protocol, which keeps most transaction data off the public blockchain and anchors cryptographic proofs to unspent transaction outputs, or UTXOs.
- Three planned services: private USDT transfers, direct exchanges between native bitcoin and USDT, and loans secured by non-tokenized bitcoin.
- Lightning Network support is planned for a second phase, and Utexo has announced no strict schedule for it.
- Crypto.news reported that Utexo has secured a commercial license to issue USDT on Bitcoin and use its trademark, and that more than 450 businesses have expressed interest.
A compliance model built on outputs, not addresses
Because RGB assets are tied to Bitcoin transaction outputs, Utexo cannot freeze them the way Tether blocks an address on Ethereum. Ihnatiuk said the company instead intends to keep a list of outputs linked to sanctioned or illicit activity and share it with exchanges and other service providers, which would refuse conversion or withdrawal of those units. Crypto.news reported that this output-based approach would target the affected holdings rather than every holding tied to an address.
Privately, the design keeps balances and transfers off a public account ledger, which differs from how USDT works on Ethereum or Tron. Cointribune noted that this confidentiality depends on the applications used and their implementation, and should not be confused with absolute anonymity.
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Funding and history
Crypto.news reported that Tether co-led Utexo’s $7.5 million funding round announced in March, alongside Big Brain Holdings and Portal Ventures, with Franklin Templeton, Maven11 Capital, Fulgur Ventures, Auros Ventures and Flow Traders named among participants. Crypto.news also reported that the loan service would let borrowers keep bitcoin on its existing network instead of converting holdings into a wrapped token on another blockchain.
USDT first launched in 2014 on Omni Layer, a protocol built on top of Bitcoin. Ethereum and Tron later became its main networks, and Tether stopped supporting USDT on Omni in 2023, so the new deployment returns the stablecoin to Bitcoin with different technology rather than after a continuous absence. Utexo’s launch plans build on Tether’s August 2025 announcement of its RGB deployment, which said RGB had reached mainnet with version 0.11.1.
Crypto.news separately reported that Tether’s U.S.-focused stablecoin, USAT, follows a different route, with Anchorage Digital Bank, N.A. as issuer and LayerZero named as preferred partner for connecting bank-issued stablecoins across networks.
Why it matters
If exchanges and wallet providers integrate the service, USDT on Bitcoin could widen what the network is used for beyond holding and sending BTC, bringing stablecoin payments, swaps and credit onto Bitcoin’s base layer. The compliance design matters for the same operators, because restrictions would depend on their willingness to screen and reject flagged outputs. The outcome of the rollout will hinge on how many wallets and exchanges adopt this version of USDT.
What to watch
The next concrete signal is whether Utexo begins issuance before October ends and confirms a date, followed by which exchanges and wallet providers announce integration. A timeline for the Lightning Network phase has not been given.
This article is not financial advice, and cryptocurrency markets are volatile and uncertain.
Reported by cointribune.com.
Sources: Cointribune, Crypto.news