- Utexo plans to issue USDT on Bitcoin this month through a Tether-backed infrastructure.
- The system will support private USDT transfers and direct BTC-USDT swaps.
- Utexo also plans Bitcoin-backed lending without requiring wrapped BTC.
Tether’s USDT is preparing to return to Bitcoin through Utexo after more than a decade away from the network. In a recent X post, Crypto Hawk reported that the integration will support private USDT transfers, direct BTC-USDT swaps, and BTC-backed loans.
The rollout is planned for October 2026, according to Utexo co-founder Viktor Ihnatiuk and reports from sources. Utexo has secured a commercial license to issue USDT on Bitcoin under Tether’s trademark.
Utexo prepares USDT launch on Bitcoin
Utexo will provide infrastructure for exchanges, wallets and payment providers through APIs, software development tools and cloud services. Its platform is designed to support native USDT activity on Bitcoin and Lightning.
USDT first launched on Bitcoin in 2014 through the Omni protocol. Tether later moved away from issuing new USDT through Omni, and the company announced in 2023 that it would stop issuing USDT on the legacy Bitcoin-based protocol.
The planned Utexo rollout uses a different technical structure. It combines Bitcoin’s UTXO model with RGB, a system that uses client-side validation for digital assets. Utexo says this design allows transaction activity to remain largely off Bitcoin’s public ledger.
Private transfers and direct BTC swaps
The planned USDT system will support private transfers between users. Utexo says its RGB-based infrastructure can keep sensitive transaction information away from public on-chain records while retaining Bitcoin as the settlement layer.
The platform will also support direct swaps between BTC and USDT. Users will not need to route every swap through a separate centralized exchange, according to Utexo’s product information. The company also lists cross-chain routing for USDT between Bitcoin and other networks.
This structure gives Bitcoin another route for stablecoin activity. It also connects BTC liquidity with USDT payments, while Utexo provides the infrastructure needed by exchanges, wallets, and payment companies.
Bitcoin-backed loans add another use case
Utexo also plans to support lending with native Bitcoin used as collateral. The model is designed to avoid wrapping BTC onto another blockchain before using it in the lending process.
Utexo’s platform already lists custodians, exchanges, wallets, and payment service providers among its target users. Its infrastructure includes API services and managed Lightning capabilities for USDT settlement.
The privacy model also changes how compliance can work. Utexo has said RGB assets are linked to Bitcoin UTXOs, so the system does not handle them like standard Ethereum addresses. The company has described mechanisms for identifying UTXOs linked to sanctioned or illicit activity.
Lightning expansion follows Bitcoin rollout
Utexo plans to extend its USDT infrastructure to the Lightning Network after the Bitcoin rollout. The company says its Lightning infrastructure will support native BTC-USDT settlement and faster payment activity.
The planned expansion gives USDT another payment route within the Bitcoin ecosystem. Utexo’s current products include Lightning infrastructure for exchanges, custodians, wallets and payment providers.
Tether has previously supported RGB development and described Bitcoin as an important blockchain for its ecosystem. In 2023, Tether said RGB could provide another route for USD₮ within Bitcoin’s broader network.
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