Tether-Backed Utexo Secures License to Issue USDT on Bitcoin

Tether-backed Utexo secures a license to issue USDT on Bitcoin, enabling direct BTC swaps, private transfers and Bitcoin-backed borrowing.

Tether-backed Utexo has secured a license to issue USDT on the Bitcoin network, bringing the stablecoin back to its original blockchain ecosystem, according to information shared by Coin Bureau.

The development would allow users to send USDT privately, swap the stablecoin directly with BTC and borrow against Bitcoin without wrapping the underlying asset, the X post said. The move comes as Tether’s stablecoin has expanded far beyond its original deployment on Bitcoin.

Utexo Brings USDT Back to Bitcoin

Utexo, a company backed by Tether, has obtained a license that enables it to issue USDT on Bitcoin, according to Coin Bureau.

The planned implementation would provide several functions directly involving Bitcoin and USDT. Users would be able to transfer USDT privately, exchange it directly for BTC and use Bitcoin as collateral for borrowing without first wrapping the cryptocurrency.

The ability to interact with USDT and BTC without a wrapped version of Bitcoin is a central feature highlighted in the announcement. Wrapped assets typically represent an asset from one blockchain in a form that can operate on another network. The Utexo approach described by Coin Bureau instead centers the activity on Bitcoin itself.

USDT Originally Launched on Bitcoin

USDT’s return to Bitcoin marks a connection to the stablecoin’s earliest history.

According to Coin Bureau, USDT first launched on the Bitcoin network in 2014. The stablecoin subsequently expanded primarily across Ethereum and Tron, where it became widely used across cryptocurrency markets and applications.

The shift away from Bitcoin as USDT’s main operating environment means that the latest Utexo initiative represents a return to the network where the stablecoin originally began.

The new license provides the regulatory or operational basis for Utexo to issue USDT on Bitcoin, although the X post does not provide further details on the specific licensing jurisdiction or the exact launch date within the month.

Bitcoin-Based USDT Adds Direct BTC Functionality

The functions outlined in the announcement focus on interactions between the stablecoin and Bitcoin rather than simply making USDT available on another blockchain.

Users would be able to swap USDT directly with BTC, while Bitcoin could also be used as collateral for borrowing without requiring the asset to be wrapped. Private USDT transfers are another feature identified in the announcement.

The development therefore combines stablecoin functionality with Bitcoin-based transactions and financial activity. Coin Bureau described the move as the return of Tether’s $184 billion USDT to Bitcoin, although the X post does not provide a separate breakdown of the stablecoin’s supply by blockchain.

Utexo’s licensed issuance is the immediate milestone identified in the announcement. The company’s next step is to bring USDT issuance and the outlined Bitcoin-based functions to users under the newly secured license.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.