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 Community assist is anticipated within the first quarter of 2027.
The undertaking faces a market the place roughly $300 billion in stablecoins already sits on Ethereum, Tron and different networks.
Bridge threat and restricted DeFi assist stay the principle hurdles.

Why USDT Is Returning to Bitcoin

USDT first appeared on Bitcoin in 2014 via the Omni protocol. Tether ended issuance there in August 2023, blaming falling utilization. The corporate later floated an RGB-based launch in 2025, nevertheless 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 depend on Tether’s USDT0 protocol.

CEO Viktor Ihnatiuk argues two issues have modified: pace 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 Match Collectively

RGB, in improvement since 2016, lets customers problem and transfer property via contracts tied to Bitcoin with out publishing each element on-chain. Contributors validate transfers themselves, whereas cryptographic commitments anchored to Bitcoin present safety. It’s neither a sidechain nor a rollup.

The protocol additionally works with Lightning, permitting USDT to maneuver via fee channels and not using a base-layer transaction every time. Utexo believes confidentiality will enchantment to companies that hate exposing their counterparties on a clear ledger. The corporate says it might probably selectively disclose knowledge for compliance and reply to regulation enforcement requests.

Bridge Danger Raises Questions

Utexo opened early entry to its USDT Mint product on October 22, letting verified exchanges, wallets and market makers take a look at 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 implies safety will depend on the bridge in addition to Bitcoin and RGB, and bridges have traditionally attracted hackers.

Utexo’s purpose is not less than $1 billion in Bitcoin-based USDT inside 12 months, with a median goal of $5 billion and an formidable ceiling of $10 billion. Whether or not demand materializes this time stays the important thing take a look at.

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