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Tether Co-Leads $7.5 Million Round for Utexo to Build Bitcoin-Native USDT Settlement

Tether casts the investment as a step toward using Bitcoin for dollar settlement via Lightning-native USDT.

Overview

  • Utexo closed a $7.5 million seed round co-led by Tether, Big Brain Holdings, and Portal Ventures, with participation from Franklin Templeton, Maven11 Capital, Fulgur Ventures, Alchemy VC, Ethereal Ventures, Auros Ventures, and others.
  • Utexo says it provides a single API that abstracts Lightning and RGB so operators can route USDT over Bitcoin rails without changing custody, compliance workflows, or user interfaces.
  • The company claims sub-second, atomic USDT settlement anchored to Bitcoin with encrypted on-chain transactions for counterparty and address privacy and with fixed, pre-confirmable fees.
  • Target customers include exchanges, wallets, payment service providers, high-frequency trading firms, and platforms that move large USDT volumes.
  • Crypto.news frames the move as a market-structure play that could bind USDT more tightly to Bitcoin and influence order-flow across venues, with performance and adoption contingent on real-world integrations and independent verification.