Tether is returning its USDT stablecoin to the Bitcoin network in October 2026. The project will be executed through Utexo, an infrastructure provider founded in 2025 that holds a commercial license from Tether to issue USDT on Bitcoin.
The initiative is supported by $7.5 million in funding raised by Utexo in early 2026. The technical implementation relies on the RGB protocol and Bitcoin’s UTXO model, which enables client-side validation to keep transaction details off the public blockchain.
The platform will offer private transfers, direct BTC-USDT swaps, and Bitcoin-backed loans. While the initial launch targets the Bitcoin mainnet, support for the Lightning Network is planned for a later stage.
To address security, Utexo will implement a blacklist of specific UTXOs associated with illicit activity. This approach allows for flagging individual assets rather than locking entire wallet addresses.
Over 450 businesses, including exchanges and wallets, have expressed interest in the project. There are also potential discussions with institutions such as Morgan Stanley, though no formal partnerships have been confirmed.
