Tether is introducing its stablecoin USDT on the Bitcoin network. Utexo CEO Viktor Ihnatiuk held a meeting with Morgan Stanley representatives in Washington, where the integration of USDT in Europe and worldwide was discussed. Tether CEO Paolo Ardoino shared on platform X that USDT is "coming home" to Bitcoin, the network where the stablecoin was first launched in 2014. Tether initially issued USDT via the Omni Layer, a protocol developed for Bitcoin, before most of its supply moved to Ethereum and Tron. In 2023, the company ceased support for the Omni version. Utexo is creating infrastructure for USDT on Bitcoin, allowing wallets, exchanges, and custodians to move the stablecoin through the Lightning Network using the RGB protocol, which enables asset issuance on Bitcoin while keeping transaction data off-chain.
Tether led a $7.5 million funding round for Utexo, also supported by Big Brain Holdings and Portal Ventures, as well as Franklin Templeton. In August, Utexo added its RGB Lightning module to the Tether Wallet Development Kit (WDK), which developers use to create self-custody wallets. Morgan Stanley has significantly deepened its efforts in the cryptocurrency space this year, launching its own Bitcoin ETF in April and opening crypto trading on E*Trade in May. However, the USDT product on Bitcoin is not yet available to most users. Utexo named UniSat, a popular wallet for Bitcoin Ordinals and tokens, as its next launch partner, and the teams have not shared a release date.
Tether first announced its plans for RGB in August 2025, describing them as an upgrade to increase privacy and scalability. "Bitcoin deserves a stablecoin that is truly native, lightweight, private, and scalable," said Paolo Ardoino. The RGB protocol has already reached the Bitcoin mainnet. However, Tether rejected the banking deposit rule under the European Markets in Crypto-Assets (MiCA) policy, which limited USDT's reach in the block. Morgan Stanley has not announced a formal partnership with Utexo, so the UniSat launch could be the first real test of demand for USDT on Bitcoin.
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