Tether Returns to Bitcoin with New USDT Infrastructure

Tether, the company behind the USDT stablecoin, is working with Utexo to bring USDT back to the Bitcoin network. This move is a return to the stablecoin's roots, as it first launched on Bitcoin in 2014. USDT's market capitalization is approximately $190 billion.

The new infrastructure, handled by Utexo, will allow users to swap BTC for USDT without needing an exchange, and borrow against their Bitcoin. This is made possible by the RGB protocol, which keeps transaction details off-chain while using the Bitcoin network to prove ownership.

The private transfer model aims to provide greater transaction privacy than other networks, such as Ethereum and Tron. When it comes to sanctions, Utexo plans to blacklist UTXOs linked to illegal activity, rather than directly freezing assets.

The company's goal is to expand the system to the Lightning Network, which is designed for faster and lower-cost payments, and allow transaction fees to be paid in USDT.