Utexo has raised $7.5 million in a seed funding round co-led by Tether, Big Brain Holdings, and Portal Ventures to launch infrastructure enabling native USDT stablecoin settlement directly on the Bitcoin network. This development addresses a critical gap in cryptocurrency infrastructure by making Bitcoin-native stablecoin settlement practical, predictable, and easy to integrate for businesses worldwide.
The funding round included participation from Franklin Templeton, Maven11 Capital, Fulgur Ventures, Alchemy VC, Ethereal Ventures, Auros Ventures, Arcanum Capital, Paper Ventures, Axia8, FlowTraders, Plan B, Gate Ventures, Sats Ventures, and strategic angels from companies including Ledger, Hyperion, BTC Turk, Echo, Legion, and SOLV. Paolo Ardoino, CEO of Tether, stated that Bitcoin has always been central to Tether's long-term vision for USDT, but what has been missing is production-ready infrastructure that makes Bitcoin-native stablecoin settlement viable at scale.
Utexo's infrastructure enables native USDT settlement directly on Bitcoin, including the first-ever availability of USDT over the Lightning Network, with fees that are fixed, predictable, and known in advance for every transaction regardless of network conditions. Settlement costs are paid in USDT and do not fluctuate with congestion or blockspace demand, while transactions settle atomically and privately, anchored to Bitcoin's security model and completed in under one second.
Historically, Lightning Network and RGB have unlocked powerful capabilities on Bitcoin but remained prohibitively complex to deploy and operate in production environments. Utexo abstracts that complexity away by providing a single API layer that enables payment operators to route USDT settlement directly over Bitcoin-native rails without needing to manage underlying technical trade-offs, rewrite user experiences, or change custody or compliance workflows. For more information on Utexo's Bitcoin-native USDT settlement infrastructure, visit https://utexo.com/.
Unlike public transaction graphs on other networks, Utexo's approach prioritizes private execution with only encrypted transactions being written on-chain, preventing the disclosure of counterparties' payment flows and wallet addresses. This allows partners to move stablecoin volume without exposure to fee volatility, congestion risk, or the weaker trust assumptions associated with fully public ledgers, bridges, and wrapped assets.
Chris Hutchinson, Co-founder of Utexo, explained that they built Utexo so that USDT could move on Bitcoin the way money is supposed to move: instantly, privately, with no surprises on costs. Utexo combines Bitcoin, Lightning, and RGB into a usable payment stack where partners integrate the API once and can route USDT natively on the most resilient open network ever built, with full control over their cost structure.
Viktor Ihnatiuk, Co-founder of Utexo, noted that for the first time, wallets will be able to offer their users free USDT transactions. Utexo provides a built-in growth flywheel where wallets grow their user base while USDT bootstraps adoption on Bitcoin. The infrastructure has been designed specifically for payment service providers, exchanges, wallets, high-frequency trading firms, and platforms already moving large volumes of USDT for merchant settlement, payouts, cross-border transfers, and global commerce.
Rather than attempting to bootstrap new L2 solutions or chase speculative demand, Utexo's go-to-market strategy focuses on routing existing USDT flows onto Bitcoin as infrastructure finally catches up with long-standing operational needs. With stablecoins increasingly replacing legacy payment rails worldwide, Utexo makes it possible for Bitcoin to function as a viable settlement layer for dollar-denominated payments, bringing Tether's long-standing vision for native USDT on Bitcoin into production for the first time.
