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Utexo has just secured $7.5 million. Tether, Big Brain Holdings, and Portal Ventures are leading this funding round for the startup aiming to make stablecoin settlement on Bitcoin a straightforward reality.
Franklin Templeton, Maven11 Capital, Fulgur Ventures, and Alchemy VC also participated. Strategic angels from companies like Ledger and Hyperion joined the venture. The startup aims to fill a significant gap in the crypto ecosystem: enabling USDT to settle directly on the Bitcoin network without current complications. Paolo Ardoino, Tether’s chief, sees Bitcoin as crucial for USDT’s long-term future. “Market cycles come and go, but the need for open and resilient settlement infrastructure remains,” he says.
Utexo simplifies Lightning and RGB. Too complicated before.
The company offers a unique API layer allowing payment operators to manage USDT settlements on Bitcoin. No need to change their compliance processes or user experience. Chris Hutchinson, Utexo’s co-founder, explains simply: “We created Utexo so that USDT can move on Bitcoin as money should: instantly, privately, and without cost surprises.” Viktor Ihnatiuk, the other co-founder, adds that their infrastructure allows wallets to offer free USDT transactions, which will boost stablecoin adoption on Bitcoin.
The system guarantees atomic settlement, privacy-respecting execution, and predictable fees for each transaction. Transactions occur in less than a second, secured by Bitcoin’s security model. Utexo encrypts all transactions to prevent disclosure of counterparties and wallet addresses. In February, Tether had already opened the source code for MiningOS, a modular operating system for managing Bitcoin mining operations presented at the Plan ₿ Forum 2026 in San Salvador.
Exchanges, wallets, payment providers: Utexo targets a wide range.
The goal is not to launch yet another speculative second-layer solution but to redirect existing stablecoin flows onto Bitcoin. High-frequency trading firms are also among the targets. Utexo has not yet announced a specific launch date. The funds raised will be used to further develop the infrastructure and recruit key blockchain talent. Chris Hutchinson emphasizes that the focus will be on continuously improving the system’s security and efficiency. Maintaining user trust remains crucial. This follows earlier reporting on Bitcoin ETFs Hemorrhage 8 Million as.
The funding comes as the stablecoin market continues to grow. Tether dominates significantly with a substantial share of transaction volume. In January 2026, the average daily USDT transaction volume exceeded $50 billion, according to CoinMarketCap. Franklin Templeton expresses confidence in Utexo’s disruptive potential. A company representative believes integrating Bitcoin-native solutions for stablecoins could redefine international payments.
Portal Ventures sees this collaboration as part of their investment strategy focused on cutting-edge financial innovations. They believe Utexo’s approach could transform current payment infrastructures. In March 2026, Utexo plans to begin beta testing with several key partners to validate its settlement infrastructure. These trials will include cryptocurrency exchanges and payment platforms, allowing for real-world evaluation.
Jason Yanowitz from Auros Ventures is a strong believer. “We believe this innovation could be a game-changer for cross-border payments,” he says. Utexo’s ability to integrate Bitcoin-native solutions represents a significant advancement, according to him. Tether, as a co-leader of this funding round, reinforces its commitment to the Bitcoin ecosystem. Paolo Ardoino mentions that investing in Utexo aligns with their strategy to enhance USDT’s utility on robust and secure blockchains.
Utexo also aims to collaborate with academic institutions to develop new security protocols. The goal: to push the current limits of blockchain technology and ensure an even more reliable settlement infrastructure. In March 2026, Utexo announced a collaboration with several major exchanges to integrate its new settlement infrastructure. Binance and Kraken are among the initial partners, according to a company press release. The initiative aims to test the functionality and effectiveness of the solution in real-world conditions. For more details, see Bitcoin Crashes Under K as Relief.
Viktor Ihnatiuk reveals that initial tests will include low-volume transactions to minimize risks. “We want to ensure our system can handle transactions with the promised speed and security,” he says at a conference in Amsterdam. Utexo confirms that discussions are ongoing with other major players in the digital payments sector.
Stripe and Square have reportedly expressed interest in exploring potential integrations. No formal agreement has been announced yet. Paolo Ardoino continues to strengthen Tether’s commitment to Bitcoin-native solutions. At the Plan ₿ Forum in San Salvador, he stated that investing in Utexo is a crucial step toward realizing Tether’s vision of making USDT a universal and reliable payment option on Bitcoin.
The Bitcoin ecosystem currently has more than 15,000 active Lightning Network nodes worldwide, according to 1ML data. This existing infrastructure could facilitate Utexo’s solution adoption, even as the startup seeks to simplify access to these complex technologies for traditional businesses.
Coinbase and Bitfinex are also closely monitoring Utexo’s developments, according to sources familiar with the matter. Both platforms are evaluating the potential integration of this infrastructure to reduce their USDT settlement costs. The U.S. Federal Reserve recently released a report on stablecoins mentioning the growing importance of decentralized settlement solutions for overall financial stability.
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