From Cointelegraph · By Christina Comben
Utexo is preparing to bring Tether’s dollar-backed stablecoin back to Bitcoin after a three-year hiatus.
The Dubai-based blockchain startup says it will achieve the integration through RGB, a protocol that keeps asset transaction data off-chain.
The public launch is scheduled for Nov. 28, with Lightning Network support planned for Q1 2027, promising private transfers and fast payments via Bitcoin’s payment network.
But with $300 billion of stablecoin supply already circulating on networks like Ethereum and Tron, why would users want to transact on a slower network that doesn’t offer smart contracts or DeFi? Can it compete with the stablecoin incumbents?
$300 billion of stablecoin supply. Source: DeFiLlama
Why bring USDT back to Bitcoin?
This isn’t the first time we’ve seen USDT on Bitcoin. It actually began life as a stablecoin on Bitcoin in 2014 through the Omni protocol, but Tether eventually halted issuance in August 2023, citing declining usage.
Tether then announced plans to launch USDT on RGB in August 2025. That didn’t happen, however, Tether subsequently led Utexo’s $7.5 million seed round in March, and the new firm will launch the Bitcoin version of the stablecoin using Tether’s USDT0 protocol.
But if usage of USDT on Bitcoin had declined to the point it was no longer viable the first time around, why would it be more popular now? What has changed since 2023?
Viktor Ihnatiuk, co-founder and chief executive of Utexo, tells Magazine the answer is two-fold: Speed and privacy. Using Bitcoin for the settlement layer, and RGB to keep transaction details off the public blockchain, makes private and fast transactions a reality.
“You can actually achieve any speed you want to achieve,” he says. “Bitcoin is the best blockchain. Lightning is the best technology to scale payments.”
RGB Protocol Documentation. Source: RGB
Utexo grew out of an effort to bring dollar-denominated payments to Bitcoin, and Ihnatiuk says the idea took shape after a conversation with Tether at Bitcoin Prague in 2023.
The company also builds on RGB and Lightning infrastructure developed by ThunderStack, founded by fellow Utexo co-founder Renat Skitsan.
What is RGB, and how does it work?
RGB has been in development since 2016 and was designed to let users issue and transfer digital assets through contracts tied to Bitcoin, without recording every transaction detail on its public blockchain.
Rather than making Bitcoin behave like Ethereum, on RGB, the parties validate asset transactions themselves, while cryptographic commitments anchored to Bitcoin help secure the system. That means RGB is a Bitcoin-native protocol rather than a sidechain or rollup.