- Published on
Tether's USDT is 'coming home' to Bitcoin this month over a decade after debut there
- Authors
- Name
- DeepHorus
USDT is expected to return to Bitcoin this month through Utexo, a Tether-backed project licensed to issue the stablecoin there. Tether CEO Paolo Ardoino wrote on X last week, âItâs coming home,â over a decade after USDT began on Bitcoin. It would restore the worldâs largest stablecoin to its original chain.
USDT launched in 2014 through Bitcoinâs Omi protocol, before Ethereum and later Tron became primary venues. Its market capitalization is nearly $190 billion. Utexo co-founder Viktor Ihnatiuk said Bitcoin remains a Tether priority, with the company treating the network as a stability haven alongside gold.
Founded in 2025, Utexo raised $7.5 million earlier this year. Its commercial license allows use of Tetherâs USDT trademark when serving exchanges, wallets and payment companies. APIs, SDKs and cloud services will let third parties integrate the asset.
Utexo combines RGB client-side validation with Bitcoinâs unspent transaction output model. Transaction details remain off-chain between counterparties, while Bitcoinâs ledger cryptographically proves ownership. Unlike public account updates on Ethereum and Tron, the system aims to keep most USDT data off Bitcoinâs main ledger.
Utexo identifies three main uses: private USDT transfers, direct BTC-USDT swaps without an exchange, and loans backed by native bitcoin. Borrowers could collateralize BTC without wrapping it on another blockchain, as with WBTC. The functions could broaden USDTâs role in Bitcoin-focused financial services.
Privacy is qualified by compliance controls. Because RGB assets are secured by Bitcoin UTXOs, Utexo cannot freeze them like an Ethereum address; it instead plans to blacklist UTXOs linked to sanctions or illicit activity and share that list with providers. Tether held about 100,000 BTC, valued at $8.4 billion, as of mid-August, according to Bitcoin Treasuries. Utexo plans to expand USDT to Bitcoinâs Lightning Network after launch.
