Morgan Stanley's Crypto Ambitions May Bring USDT Back to Bitcoin

Tether's USDT stablecoin is making a comeback on Bitcoin, and Morgan Stanley might be behind it. Utexo CEO Viktor Ihnatiuk met with representatives from the bank in Washington to discuss adoption of USDT on Bitcoin, particularly in Europe. According to Ihnatiuk, the talks covered Utexo working with Morgan Stanley to promote adoption globally.

Tether first launched its USDT stablecoin on the Omni Layer protocol built on top of Bitcoin in 2014. However, most of its supply eventually moved to Ethereum and Tron, and the company ended support for the Omni version in 2023. Utexo builds the infrastructure behind USDT on Bitcoin, allowing wallets, exchanges, and custodians to move the stablecoin over the Lightning Network.

Morgan Stanley has been expanding its crypto offerings this year, launching a spot Bitcoin ETF in April and opening E*Trade crypto trading in May. While Morgan Stanley hasn't announced a formal partnership with Utexo, the UniSat wallet's integration of USDT on Bitcoin may serve as a test of demand for the stablecoin.

Paolo Ardoino, Tether CEO, framed the move as a privacy and scaling upgrade, stating that 'Bitcoin deserves a stablecoin that feels truly native, lightweight, private, and scalable.' However, there are still challenges ahead for USDT on Bitcoin, including regulatory hurdles in Europe.