Utexo to launch USDT issuance on Bitcoin network
CIE News ·
Tether-backed project Utexo is preparing to issue USDT on the Bitcoin network using the RGB protocol, enabling off-chain validation and native BTC swaps, according to CoinDesk.
Tether-backed infrastructure startup Utexo is expected to start issuing Tether (USDT) on the Bitcoin (BTC) network this month, according to CoinDesk. Utexo, which launched in 2025 and secured $7.5 million in funding earlier this year, holds a commercial license to issue the stablecoin on the network and distribute it to wallets, exchanges, and payment providers.
The project uses the RGB protocol with client-side validation to keep transaction details off Bitcoin's public ledger, anchoring token ownership directly to unspent transaction outputs (UTXOs). Utexo co-founder Viktor Ihnatiuk told CoinDesk the system will support private transfers, direct native BTC-to-USDT swaps without an intermediary exchange, and lending using native BTC collateral without wrapping the asset.
Because RGB assets rely on Bitcoin UTXOs, Utexo plans to manage regulatory compliance by maintaining a blacklist of flagged outputs to prevent redemptions or withdrawals to Ethereum and Tron, Ihnatiuk said. The project also intends to expand USDT support to the Lightning network following the Bitcoin rollout.