Utexo to Relaunch Tether USDT on Bitcoin Network Using RGB Protocol
Utexo is relaunching Tether's USDT on the Bitcoin network using the RGB protocol, promising faster and more private transactions ahead of a November 2026 public launch.
The company Utexo is preparing to relaunch Tether's stablecoin, USDT, on the Bitcoin network utilizing an infrastructure designed to ensure faster and more private transactions. According to industry reports, the public launch is scheduled for November 28, 2026, while support for the Lightning payment network is anticipated in the first quarter of 2027. The initiative aims to expand Bitcoin utility beyond a traditional store of value, enabling seamless digital dollar payments.
USDT is designed to maintain a stable value pegged to the US dollar, serving as a primary instrument for traders moving funds between exchanges. Currently, the vast majority of stablecoin activity operates on Ethereum and Tron networks, where total supplies reach approximately 300 billion dollars according to DeFiLlama data. In contrast to these established networks, Utexo seeks to introduce distinct advantages centered on transaction privacy and high-speed execution built directly on Bitcoin.
The underlying technology powering this integration is the RGB protocol. Instead of broadcasting every transaction detail onto the public blockchain, the system allows participating parties to verify data independently, while cryptographic proofs linked to Bitcoin secure the network. This approach significantly reduces the public exposure of transfer details and balances. Furthermore, the future integration of Lightning network support will facilitate instant payments through payment channels without recording each individual transfer on the main blockchain.
Bitcoin has previously hosted USDT following its initial introduction in 2014 via the Omni protocol, though Tether discontinued issuance there in August 2023 due to declining adoption. This time, Utexo aims to overcome past limitations through enhanced privacy and scalability. The company secured 7.5 million dollars in a funding round led by Tether last March, developing the service using the USDT0 protocol.
Despite the technological advancements, potential risks remain. To issue USDT on the Bitcoin network via Utexo's Mint service, the company locks USDT0 on the Arbitrum network and issues an equivalent amount of USDT on RGB. Consequently, system security relies heavily on the cross-chain bridging mechanism and redemption reliability. According to reports, the service underwent a security audit by Oxorio, though the full report is not publicly available. Additionally, Bitcoin lacks the expansive decentralized finance ecosystem currently present on Ethereum.
For Utexo, ultimate success will be measured by user adoption and capital migration to the network. Chief Executive Officer Victor Ihnatyuk has set an ambitious target of reaching 1 billion dollars in Bitcoin-based USDT within a year. If successful, the initiative could transform Bitcoin into a viable payment medium while generating additional transaction fee revenues for network miners.
