Tether Leads $7.5 Million Seed for UAE Startup Utexo to Power Bitcoin-Native Stablecoins

Funding the Future of Bitcoin Payments

UAE-based blockchain infrastructure firm Utexo has closed a $7.5 million seed funding round to accelerate its development of stablecoin integration on the Bitcoin network. Tether led the investment round, supported by Big Brain Holdings, Portal Ventures, and Franklin Templeton. The newly acquired capital will be used to scale the company's enterprise-grade software and expand operations globally.

Enterprise-Grade Infrastructure

Founded in 2025 by Viktor Ihnatiuk and Chris Hutchinson, Utexo offers a technical bridge for financial institutions to process USDT transactions directly on Bitcoin. The platform leverages advanced layer-2 solutions, specifically the Lightning Network and the RGB protocol, to facilitate near-instant settlements. This infrastructure allows digital wallets and exchanges to provide stablecoin services without the high costs and congestion often found on the Bitcoin mainnet. A primary advantage of the Utexo platform is its emphasis on privacy and cost predictability for institutional clients. The technology encrypts on-chain transactions to protect counterparties while utilizing client-side validation to ensure regulatory compliance. Additionally, a flat-fee pricing model paid in USDT shields businesses from the unpredictable network gas fees common in other blockchain ecosystems.

Global Scaling and Emerging Markets

CEO Viktor Ihnatiuk notes that the most significant growth opportunity for stablecoins exists in emerging markets where they are used for daily commerce and remittances. By providing a unified API, Utexo enables companies to integrate Bitcoin-native stablecoins without overhauling their existing internal systems or custody frameworks. The company aims to make Bitcoin a scalable and private rail for real-world dollar transactions. This funding round underscores the UAE's position as a leading global hub for digital asset innovation and institutional crypto adoption. The involvement of Tether and Franklin Templeton signals a shift toward production-ready infrastructure for the Bitcoin ecosystem. Utexo is now positioned to serve as the invisible routing layer for the next generation of global financial payments.