Utexo Plans to Launch Private USDT Transfers on Bitcoin This Month - Blockonomi

by · Blockonomi

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  • Utexo has obtained a commercial license to issue USDT on Bitcoin and plans to launch this month
  • RGB’s client-side validation keeps most USDT transaction details off Bitcoin’s public ledger. 
  • Utexo will blacklist UTXOs tied to illicit activity, making them unredeemable instead of freezing them. 
  • Utexo plans to extend USDT support to the Lightning Network, possibly as a fee token, after launch. 

Tether-backed Utexo plans to launch USDT on the Bitcoin network this month. Co-founder Viktor Ihnatiuk said the company has secured a commercial license to issue the stablecoin using its trademark.

The Bitcoin payments infrastructure project will serve exchanges, wallets, and payment providers through APIs, SDKs, and cloud services.

Built on RGB and Bitcoin’s UTXO model, the platform will support private USDT transfers. It will also offer native BTC-USDT swaps and BTC-backed lending without wrapping Bitcoin.

Utexo Secures License and Builds Payment Infrastructure

Utexo was founded in 2025 and raised $7.5 million earlier this year. Ihnatiuk confirmed the license to CoinDesk in a Telegram message. Tether-backed Utexo will use the USDT trademark in these services.

Ihnatiuk discussed Tether’s Bitcoin ties in a recent CoinDesk interview. He said, “Tether has always been a Bitcoin company.” He added that “Bitcoin for them is a stability haven, along with gold.” Bitcoin Treasuries data shows Tether held around 100,000 BTC, valued at $8.4 billion, in mid-August.

Tether CEO Paolo Ardoino addressed the plan in a post on X last week. He wrote, “It’s coming home,” referring to USDT’s return to Bitcoin. USDT began on the network in 2014 through the Omni protocol. Ethereum and Tron later became its main venues. The stablecoin now has a market cap of nearly $190 billion.

Ihnatiuk also addressed Tether’s priorities. He said, “I can’t speak for Tether directly.” He then described Bitcoin as “a big priority for them.” In his words, “it’s our job to make USDT as accessible on Bitcoin as it is everywhere else.”

Tether-Backed Utexo Outlines Use Cases, Privacy, and Lightning Steps

Tether-backed Utexo lists three main use cases. Private USDT transfers are the first. Users can also swap BTC and USDT directly, without routing through an exchange. Borrowers can post native bitcoin as collateral, which avoids the wrapping that tokens like WBTC require.

The platform relies on RGB’s client-side validation to keep transaction data off Bitcoin’s public ledger. Ownership is anchored in UTXOs, which resemble change from a cash purchase.

By contrast, Ethereum and Tron use account-based models with public balance updates. Bitcoin’s ledger serves only as cryptographic proof of ownership.

Privacy comes with a condition. RGB assets sit against Bitcoin UTXOs, so Utexo cannot freeze them like an Ethereum address. Instead, the company will maintain a blacklist of UTXOs linked to sanctioned or illicit activity.

Exchanges and other providers will receive that list. Ihnatiuk said, “The UTXO will just become unredeemable.” Nobody could then send it back to a bridge or minting tool.

After the Bitcoin launch, Tether-backed Utexo plans to expand USDT support to the Lightning Network. Lightning is a layer-2 network built for faster and cheaper Bitcoin payments. The goal may be to make USDT a fee token there. Circle’s Arc network uses USDC for gas in a similar way.

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