Utexo Raises $7.5M for Native USDT on Bitcoin
Utexo has raised $7.5 million in a round led by Tether to build infrastructure for native USDT settlements on the Bitcoin network. The initiative aims to bridge Bitcoin's network with the broader stablecoin economy, making settlements easier for payment providers and trading venues.
The funding round was co-led by Big Brain Holdings and Portal Ventures, with significant participation from financial giant Franklin Templeton, alongside Maven11 Capital, Fulgur Ventures, and others. This diverse investor base signals broad market confidence in bringing large-scale stablecoin liquidity to the Bitcoin network. Utexo's core technology abstracts the complexities of the Lightning Network and the RGB protocol into a single API for payment operators. This allows for the routing of USDT settlements over Bitcoin's native rails without altering existing custody or compliance workflows. The system is designed for high performance, enabling atomic, privacy-preserving settlements in under one second. A key feature is the ability to offer fixed, predictable transaction fees paid in USDT, a significant departure from the often-volatile gas fees on other networks. Historically, USDT existed on Bitcoin via the Omni Layer, but this new infrastructure marks a more direct, native integration. Utexo's solution is aimed at enterprise-grade use cases, targeting exchanges, payment providers, and high-frequency trading firms that handle large volumes of USDT. For Tether, this move reinforces CEO Paolo Ardoino's long-stated vision of Bitcoin as a central pillar for USDT's future. By facilitating a native stablecoin, Tether aims to enhance Bitcoin's utility beyond a simple store of value, positioning it as a global settlement layer for dollar-denominated transactions.
