Tether, Utexo Pursue Separate Paths for Bitcoin-Based USDT Settlements

Tether and Utexo are working on separate infrastructure projects to support Tether USDt (USDT) settlements on Bitcoin (BTC). The two companies aim to facilitate faster, lower-cost transactions for remittances, payments, and cross-border settlements. However, the available information does not indicate that one effort has replaced the other or that either project has reached wide consumer distribution.

Tether announced in January 2025 its plan to connect USDT with Bitcoin's base layer and the Lightning Network through Lightning Labs' Taproot Assets protocol. In contrast, Utexo is developing a system that combines Bitcoin, Lightning, and RGB. The company secured a $7.5 million seed round in March 2026, co-led by Tether, Big Brain Holdings, and Portal Ventures.

The two projects employ different technical approaches. Tether's integration centers on Taproot Assets and Lightning, while Utexo's system uses RGB alongside Bitcoin and Lightning. The publicly released documentation for Tether's Wallet Development Kit includes a Utexo RGB wallet module, version 2.0.3.