Utexo is preparing to bring a Bitcoin-based version of Tether’s USDT back to the network, with a public launch planned for Nov. 28. The Dubai-based blockchain company says its system will combine Bitcoin settlement with RGB, a protocol designed to keep asset transaction details off the public blockchain.
The project is intended to offer confidential transfers and, later, rapid payments through the Lightning Network. Lightning support is planned for the first quarter of 2027. The proposed launch comes as stablecoins already represent about $300 billion in supply across networks including Ethereum and Tron, according to data cited in the original reporting by Cointelegraph.
Why Utexo is returning USDT to Bitcoin
USDT has previously operated on Bitcoin. Tether first issued the dollar-linked stablecoin on the network in 2014 using the Omni protocol, but stopped issuing it in August 2023 after usage declined.
Tether announced plans to introduce USDT on RGB in August 2025, although that launch did not take place. Tether later led Utexo’s $7.5 million seed funding round in March. Utexo now plans to issue the Bitcoin version through Tether’s USDT0 protocol.
Utexo co-founder and chief executive Viktor Ihnatiuk told Cointelegraph that the new effort is based mainly on two features: speed and privacy. Bitcoin would provide the settlement layer, while RGB would allow transaction information to remain off-chain rather than being recorded in full on Bitcoin’s public ledger.
The company’s argument is not that Bitcoin should replace Ethereum as a platform for decentralized finance, or that it should immediately match Tron for retail transaction volume. Instead, Utexo is targeting payments and business use cases where Bitcoin-based settlement and more confidential transactions could be valuable.
How RGB and the bridge work
RGB has been under development since 2016. It allows digital assets to be issued and transferred through contracts linked to Bitcoin, without placing every detail of each transaction on the public blockchain. The parties involved validate the asset transfers themselves, while cryptographic commitments anchored to Bitcoin provide security.
The protocol is Bitcoin-native: it is neither a sidechain nor a rollup. It can also work with the Lightning Network, potentially allowing USDT to move through payment channels without requiring each transfer to be recorded as a separate Bitcoin base-layer transaction.
That approach is intended to address one obstacle to business adoption: Bitcoin’s public transparency. Utexo says relevant transaction information could be disclosed selectively for compliance purposes, and that it has procedures for responding to law-enforcement requests.
Utexo opened early access to its Utexo Mint product on Oct. 22. Verified professional operators, including exchanges, wallets and market makers, can test minting, confidential transfers and redemption on Bitcoin’s Signet test network ahead of the public launch.
Mint does not move existing USDT directly onto Bitcoin without an intermediary step. It locks USDT0 on Arbitrum and then creates an equivalent amount of RGB-based USDT on Bitcoin. To redeem the asset, users burn the Bitcoin-based token and initiate the release of the corresponding funds on the source network.
This means the arrangement depends not only on Bitcoin and RGB, but also on the connection between the networks. Users must rely on the locked USDT0 remaining available when they redeem their Bitcoin-based USDT. Utexo says Mint has been audited by Oxorio, although the complete audit report has not been made public. The bridge structure also introduces an additional security consideration because cross-network bridges have historically attracted hackers.
Adoption targets and the market picture
Utexo has identified UniSat as a launch partner, with plans to support USDT transfers and swaps through its wallet. Ihnatiuk also said the company is working with 12 over-the-counter network partners and has another 40 in its pipeline.
The company sees possible applications in Bitcoin-native trading and lending, escrow-based exchanges and miner operations. Miners could potentially exchange BTC for USDT on Bitcoin instead of moving funds to centralized exchanges, reducing reliance on custodial platforms and supporting automated hedging strategies.
Utexo does not expect Bitcoin to reproduce Ethereum’s broader decentralized-finance ecosystem. Ihnatiuk said Bitcoin’s primary strength in this project is payments rather than complex DeFi applications.
The company has set an ambitious first-year objective: at least $1 billion of USDT on Bitcoin within 12 months. Ihnatiuk described $10 billion as an initial goal and $5 billion as a median goal. He also expects increased USDT activity to generate more transaction fees for Bitcoin miners, although that outcome depends on actual adoption after launch.
Moneyiar market data at the stated time showed Bitcoin at $80430.506808014, down 0.08% over 24 hours and 1.32% over seven days, as of 2026-10-25 22:39 +03:30. Ethereum was $2342.0570017305, up 0.02% over 24 hours and down 1.77% over seven days, at the same time. Tether USDt was priced at $0.9987425383, with a 0% 24-hour change and a 0.01% seven-day decline, as of 2026-10-25 22:38 +03:30. TRON was $0.3299297572, up 0.31% over 24 hours and down 0.89% over seven days, as of 2026-10-25 22:39 +03:30.
The central test for Utexo will be whether privacy, Bitcoin-based settlement and planned Lightning payments can attract users after USDT’s earlier Bitcoin incarnation lost momentum. The launch may give the network another opportunity, but its success will depend on demand, integrations and confidence in the bridge supporting the new tokens.
