Utexo Bets on Privacy to Bring USDT Back to Bitcoin

TLDR

  • Dubai-based startup Utexo plans to relaunch Tether’s USDT on Bitcoin utilizing the RGB protocol, with a public launch set for November 28.
  • Lightning Network help is predicted within the first quarter of 2027.
  • The mission faces a market the place roughly $300 billion in stablecoins already sits on Ethereum, Tron and different networks.
  • Bridge threat and restricted DeFi help stay the primary hurdles.

Why USDT Is Returning to Bitcoin

USDT first appeared on Bitcoin in 2014 by the Omni protocol. Tether ended issuance there in August 2023, blaming falling utilization. The firm later floated an RGB-based launch in 2025, however it by no means materialized.

Now Utexo is taking on the duty. Tether led the startup’s $7.5 million seed spherical in March, and the brand new model will rely on Tether’s USDT0 protocol.

CEO Viktor Ihnatiuk argues two issues have modified: velocity and privateness. Bitcoin acts because the settlement layer, whereas RGB retains transaction particulars off the general public blockchain. He claims Lightning funds can settle in round 100 milliseconds.

How RGB and Lightning Fit Together

RGB, in growth since 2016, lets customers difficulty and transfer property by contracts tied to Bitcoin with out publishing each element on-chain. Participants validate transfers themselves, whereas cryptographic commitments anchored to Bitcoin present safety. It is neither a sidechain nor a rollup.

The protocol additionally works with Lightning, permitting USDT to transfer by cost channels with out a base-layer transaction every time. Utexo believes confidentiality will enchantment to companies that detest exposing their counterparties on a clear ledger. The firm says it may selectively disclose information for compliance and reply to regulation enforcement requests.

Bridge Risk Raises Questions

Utexo opened early entry to its USDT Mint product on October 22, letting verified exchanges, wallets and market makers check minting and redemption on Bitcoin’s Signet community.

Getting current tokens onto Bitcoin requires locking USDT0 on Arbitrum earlier than an equal quantity is minted on Bitcoin. Redemption reverses the method by burning the RGB asset. This means safety relies upon on the bridge in addition to Bitcoin and RGB, and bridges have traditionally attracted hackers.

Utexo’s aim is at the very least $1 billion in Bitcoin-based USDT inside 12 months, with a median goal of $5 billion and an formidable ceiling of $10 billion. Whether demand materializes this time stays the important thing check.

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