Tether Brings USDT Back to Bitcoin with Private Transfers and Swaps

Tether is bringing its flagship stablecoin USDT back to the Bitcoin network after nearly a decade spent mostly on Ethereum and Tron. The relaunch, planned for October 2026 through an infrastructure project called Utexo, will include private transfers, direct BTC-USDT swaps, and loans backed by Bitcoin.

The technical foundation of Utexo combines two pieces: the RGB protocol and Bitcoin's UTXO model. This design powers the three headline features. Users will be able to send USDT privately, swap directly between BTC and USDT without intermediaries, and take out loans using native Bitcoin as collateral.

A blacklist of UTXOs linked to illicit activity will address concerns about bad actors. Over 450 businesses have expressed early interest in Utexo's offerings, including exchanges and wallets. Potential discussions involving major institutions are also underway, with Morgan Stanley among the names mentioned.