Tether to Reintroduce USDT on Bitcoin in 2026 Through Utexo

Tether, the issuer of the USDT stablecoin, is planning to bring USDT back to the Bitcoin blockchain in October 2026. This move comes nearly three years after Tether halted USDT issuance on Bitcoin’s original Omni Layer in August 2023. The return is being facilitated through Utexo, a licensed infrastructure project founded in 2025, which raised $7.5 million in early 2026. However, the launch date, funding details, and license claim have not been independently confirmed by Utexo.

The new Bitcoin-based USDT will feature private transfers, direct swaps between BTC and USDT, and loans backed by native Bitcoin. Support for Bitcoin’s Lightning Network is planned for a later stage. While over 450 businesses, including exchanges and wallet providers, have expressed interest, no partnerships have been confirmed. Morgan Stanley was mentioned as a potential institutional participant, but no formal deal has been verified.

The system will use RGB client-side validation, which keeps most transaction details off the public blockchain, enhancing privacy but potentially reducing fee revenue for Bitcoin miners. The launch is set for Bitcoin’s mainnet first, with Lightning support expected later. However, without confirmed exchange or payment company backing, the project may start as a new issuance channel rather than a proven payments network.

Supply growth and actual use will determine whether Bitcoin-based USDT regains a meaningful role in stablecoin payments. A useful checkpoint is set for March 2027. If supply grows steadily with Lightning support and exchange backing, it could indicate a successful revival. Otherwise, the project may simply mark a change in where USDT can be issued. The evidence so far supports a planned return but not a guaranteed revival of USDT payment activity on Bitcoin.