Tether leads $7.5 million funding round for Utexo startup

Tether – the world’s largest stablecoin issuer – has co-led a $7.5 million funding round for Utexo, a platform developing payment infrastructure that allows direct USDT payments over the Bitcoin network.

The funding round also included participation from funds such as Big Brain Holdings, Portal Ventures, and Franklin Templeton.

According to a joint statement from Utexo and Tether, the project’s goal is to build native stablecoin payment infrastructure on Bitcoin. Utexo’s technology enables USDT transactions to be paid directly on the Bitcoin network, while also supporting the use of this stablecoin on the Lightning Network.

Payments will have a fixed fee announced in advance, with transactions processed through an “atomic settlement” mechanism that completes instantly and privately, leveraging Bitcoin’s security. Payment costs will also be paid directly in USDT.

Tether CEO Paolo Ardoino stated that Bitcoin has always been an important part of the company’s long-term vision for USDT. He believes that enabling direct USDT payments on Bitcoin and the Lightning Network with predictable costs will strengthen Bitcoin’s role as a global payment infrastructure for USD transactions in the real world.

Currently, USDT has a total supply of approximately $184 billion, making it the most popular USD-pegged stablecoin on the market.

Thanks to significant profits, Tether’s investment arm is increasingly actively investing in various sectors, especially companies developing technology to support its stablecoin ecosystem. Recently, Tether also invested in LayerZero Labs – the developer of technology for the multi-chain USDT version USDT0 – and the sleep technology startup Eight Sleep, valued at around $1.5 billion.