Tether, the world’s largest stablecoin issuer, has co-led a $7.5 million round in Utexo, a startup enabling USDT settlement on Bitcoin.
“Bitcoin has always been central to Tether’s long-term vision for USDT, but turning that idea into reality required infrastructure that didn’t yet exist,” Utexo and Tether said in a statement Friday. “Utexo was founded to build that solution and enable Bitcoin-native stablecoin settlement with robust, production-ready payment rails.”
With a supply of $184 billion, USDT is the world’s most popular U.S. dollar-pegged stablecoin.
Utexo’s technology allows USDT transactions to be settled directly on the Bitcoin network, which includes making it possible for the stablecoin to be used over the Lightning Network. Payments carry fixed fees that are revealed beforehand, the companies said.
Transactions are settled atomically and privately while benefiting from security tied to Bitcoin’s network. Settlement costs are paid in USDT.
“Bitcoin has always been central to Tether’s long-term vision for USDT,” said Tether CEO Paolo Ardoino. “By enabling native USDT settlement directly over Bitcoin and the Lightning Network, with predictable costs and seamless integration, it strengthens Bitcoin’s position as a global settlement rail for real-world dollar transactions.”
Massively profitable, Tether’s investment arm has become a prolific investor in a variety of industries. The firm has also made investments in companies that provide technology that support or bolster its stablecoin business.
Last month, for example, Tether invested in LayerZero Labs, which owns tech being used to create USDT0, the omnichain version of USDT. Earlier this week, Tether invested in the sleep-technology startup Eight Sleep, at a $1.5 billion valuation.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2026 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
