Tether brings USDT back to Bitcoin via Utexo for private transfers

The Utexo platform utilizes RGB technology alongside Bitcoin's unspent transaction output (UTXO) model, enabling client-side validation. This means that most transaction information does not need to be broadcast to the public blockchain, facilitating private transfers and direct BTC-USDT swaps. Additionally, users will be able to leverage native Bitcoin as collateral for borrowing, offering an alternative to wrapped Bitcoin products.

Utexo also plans to address illicit transactions by blacklisting specific UTXOs linked to illegal activities, while still allowing access to other holdings on the same address. Following the mainnet launch, Utexo intends to integrate Lightning Network support, which would enable USDT transfers via Bitcoin's faster payment layer.

Tether originally launched USDT on the Bitcoin network via the Omni Layer in 2014. However, the company migrated most of its stablecoin activity to other blockchains like Ethereum and Tron, ceasing Omni issuance in 2023. Tether CEO Paolo Ardoino had previously hinted at the stablecoin's return to Bitcoin with a social media post in September.