Tether Brings USDT to Bitcoin With Private Transfers and Direct Swaps

41 mins ago Updated 22 mins ago

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Highlights

Tether brings USDT back to Bitcoin through Utexo, supporting private transfers and direct BTC-USDT swaps.
Utexo uses RGB and Bitcoin’s UTXO model to keep most stablecoin transaction information off-chain securely.
Bitcoin mainnet support arrives first, while Utexo plans Lightning Network integration for faster USDT payments.

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Tether is bringing USDT back to Bitcoin through Utexo, opening a new route for private stablecoin transfers. The platform will also support direct BTC-USDT swaps and Bitcoin-backed lending without moving BTC to another blockchain.

Tether USDT Returns to Bitcoin Through Utexo

Tether introduces USDT to Bitcoin with private transfers and direct swaps via Utexo. The project plans to launch the stablecoin on Bitcoin mainnet in October. Utexo has commercial authorization from Tether to issue USDT on Bitcoin.

The project is also developing infrastructure for exchanges, wallets and payment providers. This deployment follows Tether’s previous effort to re-enter Bitcoin with USDT via RGB.

The USDT originally debuted on the Bitcoin network via the Omni Layer in 2014. Tether then moved the majority of the stablecoin activity to other blockchain networks, such as Ethereum and Tron. The company stopped issuing Omni in 2023 due to the migration of USDT activity to other places.

In September, Tether CEO Paolo Ardoino hinted at the return with a brief post on X: “It’s coming home.”

Private Transfers and Direct BTC-USDT Swaps

Utexo implements RGB along with Bitcoin’s unspent transaction output (UTXO) model. RGB is a client-side validation, which means that participants can verify most of the information about the transaction without relying on the validation service.

Consequently, the majority of transaction information is not required to be broadcasted to Bitcoin’s public blockchain. The system will support private USDT transfers and direct swaps between native BTC and USDT. Users can also use native Bitcoin as collateral to borrow money, rather than wrapping their Bitcoin on another blockchain.

That structure provides another option alongside wrapped Bitcoin products across crypto markets. However, more integration by exchanges and wallets and other platforms with Utexo’s infrastructure will be necessary for wider adoption.

Utexo also aims to address illegal transactions by blacklisting certain UTXOs associated with illegal activity. Instead of blocking an entire address, the system is able to prevent access to specific transaction outputs, while allowing access to other holdings on the same address.

Lightning Network Support Planned After Mainnet Launch

Utexo will start the October rollout on Bitcoin mainnet and plans to add Lightning Network support later. The expansion would allow USDT transfers through Bitcoin’s faster payment layer.

Tether has previously explored USDT integration with Bitcoin and the Lightning Network. Its RGB plans now provide another route for stablecoin activity within the Bitcoin ecosystem.

More than 450 businesses, including exchanges and wallet providers, have shown interest in Utexo. Discussions involving larger financial institutions have also emerged, although Utexo has not confirmed any partnerships.

The mainnet launch will provide an early test for private USDT transfers and native BTC-USDT swaps. It will also test demand for Bitcoin-backed lending through Utexo’s infrastructure.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.