USDT Returns to Bitcoin Network via Utexo
Tether's stablecoin, USDT, is returning to its roots with a launch on the Bitcoin network via the Utexo infrastructure venture. This move marks a significant shift for the largest stablecoin, which has primarily been issued on the Ethereum and Tron networks.
Utexo, a Tether-backed project, has secured a commercial license to issue USDT on Bitcoin, paving the way for the stablecoin's return to its original blockchain. The company's co-founder, Viktor Ihnatiuk, stated that Tether has always been a Bitcoin company, and that Bitcoin serves as a stability haven for the stablecoin, alongside gold.
The new USDT on Bitcoin will be built on the RGB protocol and Bitcoin's UTXO model, allowing for private transfers, native swaps between BTC and USDT, and BTC-backed lending without the need for wrapping Bitcoin.
USDT's relationship with Bitcoin is not new, as the stablecoin was first issued on the network through the Omni protocol in 2014. Utexo plans to expand USDT support to the Lightning Network once the Bitcoin-based rollout is live, potentially positioning Bitcoin as a more complete payments stack.