Tether Backs Utexo's $7.5M Seed Round to Bring Native USDT to Bitcoin

Utexo Secures $7.5M to Build Native USDT on Bitcoin

Utexo, a startup focused on bringing USDT natively to the Bitcoin blockchain, has closed a $7.5 million seed round. The raise was led by stablecoin issuer Tether alongside Big Brain Holdings and Portal Ventures.

«Utexo has raised $7.5M from @tether, @BigBrainVC, and @PortalVentures to bring USDT natively on Bitcoin. After more than a decade, USDT is finally coming home.» — Utexo (@utexocom), original post

Additional participants in the round include Franklin Templeton, Maven11 Capital, Fulgur Ventures, Alchemy VC, Ethereal Ventures, and several other investors.

Why This Matters

USDT was originally launched on the Bitcoin blockchain via the Omni Layer protocol, but the majority of its activity gradually shifted to Ethereum, Tron, and other chains. Bringing the world's largest stablecoin back to Bitcoin using modern infrastructure could significantly enhance the network's payment capabilities and reinforce its position as a global settlement layer.

The investment also signals Tether's strategic commitment to Bitcoin as the long-term home for its flagship stablecoin — a move that could attract additional liquidity and developer attention to the Bitcoin ecosystem.

How Utexo Works

Utexo is building infrastructure that enables native USDT settlements on Bitcoin. The project provides dedicated Lightning Network channels for stablecoin transactions with fixed fees.

According to the development team, transfers are processed atomically and privately, fully adhering to Bitcoin's security model while completing in under one second. To prevent disclosure of flow data, counterparties, and wallet information, only encrypted transaction data is recorded on the public blockchain.

What Leadership Says

Tether CEO Paolo Ardoino stated that Bitcoin has always been central to the company's long-term USDT strategy. He noted that market cycles come and go, but the need for open and resilient settlement infrastructure remains constant. Ardoino described Utexo as a viable, scalable solution with predictable costs and seamless integration, aimed at strengthening Bitcoin's role as a global settlement system for moving value worldwide.

Utexo co-founder Victor Ignatyuk said the project provides a built-in growth mechanism: wallets expand the user base while USDT drives Bitcoin adoption. He declared that the gap between the two most important digital assets has finally been closed.

Tether's Expanding Investment Portfolio

The Utexo investment fits into Tether's broader capital deployment strategy. In 2025, the company's net profit exceeded $10 billion, and it has been actively channeling surplus funds into new ventures. In February alone, Tether became a strategic investor in interoperability protocol developer LayerZero Labs, Hyperliquid application operator Dreamcash, and acquired a stake in online marketplace Whop.