Viktor Ihnatiuk, the CEO of Utexo, stated that he met with representatives from Morgan Stanley in Washington to talk about bringing USDT to Bitcoin. Ihnatiuk noted that the discussion centered on potential collaboration with the banking giant to drive adoption both in Europe and across the globe.
Paolo Ardoino, CEO of Tether, amplified the announcement on X by sharing that USDT is “coming home” to Bitcoin, which is the original network where the stablecoin debuted back in 2014.
Initially, Tether minted USDT via the Omni Layer protocol, which runs on top of Bitcoin, though the vast majority of its supply eventually migrated to Tron and Ethereum. Support for the Omni-based version was ultimately discontinued by the company in 2023.
Why Morgan Stanley’s Interest Matters
Utexo develops the foundational infrastructure for running USDT on Bitcoin, enabling crypto custodians, exchanges, and digital wallets to transfer the stablecoin across the Lightning Network. This system utilizes RGB, an architecture designed for issuing assets on Bitcoin while storing transaction data off the main chain.
According to the RGB Protocol Association, Tether spearheaded a $7.5 million seed funding round for the startup alongside Portal Ventures and Big Brain Holdings. Franklin Templeton also participated in the funding round.
Utexo integrated its RGB Lightning module into Tether’s Wallet Development Kit (WDK)—a developer toolkit used for creating self-custody wallets—back in August. Prior to establishing Utexo, Ihnatiuk served as the founder of software development firm Boosty Labs.
Meanwhile, Morgan Stanley has accelerated its crypto sector involvement throughout the year. The financial institution introduced its own spot Bitcoin ETF in April and subsequently rolled out crypto trading services through E*Trade in May.
What Still Stands Between USDT on Bitcoin and Users
Despite these developments, the offering is not yet available to the general public. Utexo designated UniSat—a popular wallet for Bitcoin Ordinals and tokens boasting a user base of more than 1 million active users weekly—as its upcoming integration partner, though neither organization has disclosed a specific launch timeline.
Tether initially unveiled its intentions regarding the RGB protocol in August 2025, with Ardoino describing the initiative at the time as a significant upgrade for scalability and user privacy.
“Bitcoin deserves a stablecoin that feels truly native, lightweight, private, and scalable.”
Paolo Ardoino, Tether
Since then, the RGB protocol has successfully deployed to the Bitcoin mainnet.
This strategy aligns with Ardoino’s broader vision, as he has previously dismissed the idea of building a dedicated Tether blockchain in favor of leveraging established networks.
Adoption within Europe may present greater obstacles, however. Tether pushed back against bank-reserve mandates outlined in the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework, which has restricted the availability of USDT within the region.
Given that Morgan Stanley has not formally confirmed a partnership with Utexo, the upcoming integration with UniSat will likely serve as the initial real-world evaluation of consumer demand for USDT running on Bitcoin.
Frequently Asked Questions
What is USDT on Bitcoin?
USDT on Bitcoin is a revival of Tether’s stablecoin on the Bitcoin network, utilizing the RGB protocol and Lightning Network for off-chain transactions while maintaining native asset issuance.
Who is partnering with Utexo?
Utexo is working with Tether, and has named UniSat as its upcoming launch partner for wallet integration. Utexo also recently discussed adoption efforts with representatives from Morgan Stanley.
Is USDT on Bitcoin available to the public yet?
No, the product is not yet live for most users, and neither Utexo nor UniSat has announced an official release date.
Why did Tether stop supporting the original Bitcoin integration?
Tether previously issued USDT via the Omni Layer protocol on Bitcoin before shifting the vast majority of its supply to Ethereum and Tron, eventually ending support for the Omni version in 2023.
