Tether is launching USDT on Bitcoin this month via Utexo, enabling private transfers, BTC-USDT swaps, and BTC-backed loans with off-chain settlement.
DeFi & Yields ·
Tether's USDT stablecoin is set to launch on Bitcoin this month through Utexo, a Tether-backed infrastructure project, marking the stablecoin's return to Bitcoin over a decade after its initial 2014 debut on the network. Utexo, founded in 2025 and backed by $7.5 million in funding, has been granted a commercial license to issue USDT on Bitcoin and plans to make the stablecoin available through exchanges, wallets, and payment providers.
The launch will employ the RGB protocol with client-side validation to keep most transaction data off Bitcoin's public ledger, anchoring ownership in unspent transaction outputs rather than relying on account-based models used on networks like Ethereum or Tron. Three primary use cases include private USDT transfers, direct native BTC-to-USDT swaps without exchange routing, and lending arrangements where borrowers can use native bitcoin as collateral. Utexo also plans to blacklist UTXOs linked to sanctioned activity and expand USDT to Bitcoin's Lightning Network following the initial launch.
What remains unclear is the timeline for Lightning Network expansion, the operational details of collateral management in the lending service, and how Utexo's compliance approach will evolve as regulatory frameworks around stablecoins develop.