Tether-backed Utexo plans USDT return to Bitcoin in October

Tether-backed project Utexo plans to start issuing USDT on Bitcoin this month through the RGB protocol, returning the stablecoin to the network where it first launched. CoinDesk reported on Oct. 2 that Utexo has a commercial license to issue USDT and plans to serve exchanges, wallets and payment providers. USDT began on Bitcoin in 2014 using the Omni protocol; Ethereum and Tron later became its main networks.

How would RGB put USDT on Bitcoin?

Under Utexo’s plan, RGB handles USDT transfers while Bitcoin’s ledger anchors proof of ownership. Each side checks the asset data on its own device, so most transfer details stay off Bitcoin’s public ledger. Ownership is tied to unspent transaction outputs, or UTXOs: pieces of bitcoin left over from earlier transactions, a little like change after a cash purchase. Bitcoin records the proof, while the transaction details remain between the people making the transfer.

Utexo plans to give service providers APIs, software development kits and cloud tools to connect the system. The project says its intended uses include private USDT transfers, direct swaps between bitcoin and USDT without routing through an exchange, and loans backed by native bitcoin rather than wrapped bitcoin on another blockchain.

Can Utexo freeze USDT on Bitcoin?

Not in the same way Tether can freeze an Ethereum address, CoinDesk reported. Utexo co-founder Viktor Ihnatiuk told the publication that the project would instead blacklist UTXOs linked to sanctioned or illicit activity and share that information with exchanges and other providers. Ihnatiuk said a blacklisted UTXO would become unredeemable through a bridge or minting tool, and could not be withdrawn to Ethereum or Tron.

Does the October plan include Lightning?

No. The planned first step is issuing USDT on Bitcoin through RGB. Utexo’s next step, after issuance goes live, is to extend support to the Lightning Network, which is designed for faster, cheaper Bitcoin payments. The article describes that as a plan, not a feature already available.

The return is a change in where USDT can be issued, not a return to its original technical setup: Omni was its Bitcoin protocol in 2014, while Utexo’s proposed system uses RGB and keeps most transfer data off-chain.