Utexo Sets October Launch for USDT on Bitcoin Network

The project intends to provide the necessary software, cloud services, and developer tools for exchanges, wallets, and payment providers to integrate Bitcoin-based USDT. By leveraging the RGB protocol, payment details will remain off the public blockchain record, as ownership is tied to unspent transaction outputs. This approach allows for private transfers and lending against native Bitcoin without the need for wrapping assets across different chains.

Co-founder Viktor Ihnatiuk confirmed that Utexo has secured a commercial license to issue USDT on Bitcoin. The rollout will initially focus on the Bitcoin mainnet before expanding to include support for the Lightning Network. Regarding compliance, Utexo plans to implement a blacklist for transaction outputs linked to illicit activity. Unlike Ethereum-based freezes, this system prevents flagged outputs from being redeemed through bridges or withdrawn to other networks like Tron or Ethereum, effectively isolating restricted assets rather than freezing specific addresses.

This initiative follows a $7.5 million seed funding round announced in March, co-led by Tether, Big Brain Holdings, and Portal Ventures. While Utexo has reported interest from over 450 businesses, no formal partnerships have been confirmed. The venture represents a shift for Tether, which previously utilized the Omni layer for Bitcoin-based USDT before discontinuing minting on legacy networks in recent years.