Tether-backed fintech firm Utexo is preparing to introduce USDT stablecoin transfers on the Bitcoin network in the coming weeks, bringing the world’s largest dollar-pegged cryptocurrency back to its original blockchain after years of rapid expansion elsewhere.
Utexo receives license for Bitcoin-based USDT issuance
Utexo co-founder Viktor Ihnatiuk confirmed the company recently obtained a commercial license permitting the issuance of USDT on Bitcoin using the Tether trademark. Founded in 2025, Utexo raised $7.5 million earlier this year to build out its Bitcoin payments infrastructure.
The platform is designed to serve exchanges, wallets, and payment providers with a suite of APIs, SDKs, and cloud-based solutions, enabling seamless integration with the Bitcoin network. USDT transfers will be fully supported, with added functions such as direct BTC-USDT swaps and BTC-backed collateralized lending, eliminating the need to wrap native bitcoin.
Ihnatiuk has described Tether’s historic commitment to the Bitcoin ecosystem, stating,
Tether has always been a Bitcoin company, viewing Bitcoin as a haven of stability alongside gold. Making USDT as accessible on Bitcoin as on other networks is a major priority for Utexo.
In mid-August, Tether held approximately 100,000 BTC valued at $8.4 billion, according to data from Bitcoin Treasuries. USDT was first launched on Bitcoin via the Omni protocol in 2014, though its main usage later shifted to Ethereum and Tron. USDT now boasts a market capitalization nearing $190 billion.
Privacy and compliance driven by RGB and UTXO model
Utexo’s core infrastructure is built on the RGB protocol and utilizes Bitcoin’s UTXO (unspent transaction output) model. This approach allows for private USDT transfers by leveraging client-side validation, which keeps most transaction information off the Bitcoin public ledger. Bitcoin’s UTXO architecture anchors digital asset ownership while preserving the privacy of individual transactions.
Unlike Ethereum and Tron, which operate on an account-based model publicizing balance and transaction updates, Utexo’s system ensures cryptographic proof of ownership without exposing user data. However, while RGB assets cannot be frozen at the address level as on Ethereum, Utexo will enforce compliance by blacklisting UTXOs involved in illicit or sanctioned activity, effectively rendering those tokens unredeemable. The list will be shared with exchanges and payments partners to support compliance.
Ihnatiuk explained that once a UTXO is blacklisted, it can no longer be returned to any bridge or redemption tool, thus upholding both privacy and regulatory standards.
USDT to expand utility on Lightning Network
Following its official launch on Bitcoin, Utexo intends to expand USDT support to the Lightning Network, a prominent layer-2 solution designed for rapid, low-cost Bitcoin transactions. This step could introduce USDT as a fee token on Lightning, mirroring approaches such as Circle’s Arc network, which leverages USDC for its own gas fees.
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