UAE based blockchain startup Utexo has raised $7.5 million in a Tether led seed round to build Bitcoin native USDT payment infrastructure, targeting faster and scalable stablecoin settlements.
UAE based blockchain infrastructure startup Utexo has secured $7.5 million in a seed funding round led by Tether, marking a significant step in efforts to expand stablecoin functionality on the Bitcoin network. The round was co led by venture firms including Big Brain Holdings and Portal Ventures, with participation from institutional investors such as Franklin Templeton, Maven11 Capital, and Fulgur Ventures.
Founded by Chris Hutchinson and Viktor Ihnatiuk, the startup is focused on building infrastructure that enables native settlement of USDT directly on the Bitcoin network, an area that has historically lacked scalable, production ready solutions. The company’s core offering is an API driven platform that allows payment providers, digital wallets, and exchanges to integrate stablecoin transactions without modifying their existing compliance or custody systems.
Utexo’s technology combines Bitcoin with second layer protocols such as the Lightning Network and RGB, enabling transaction settlement in under one second with fixed, predictable fees. This approach is designed to address long standing limitations associated with Bitcoin’s base layer, particularly around speed, cost variability, and scalability, while maintaining the network’s security and decentralization.
The investment underscores growing interest in Bitcoin native financial infrastructure, particularly as stablecoins continue to dominate crypto based payments and liquidity flows. According to Tether CEO Paolo Ardoino, the initiative supports a broader vision of positioning Bitcoin as a global settlement rail for dollar denominated transactions, enabled by more reliable and scalable infrastructure.
Historically, the majority of stablecoin activity has taken place on smart contract enabled blockchains such as Ethereum and Tron, where transaction speeds and programmability have been more advanced. Utexo’s model seeks to reintegrate stablecoin utility into Bitcoin’s ecosystem, leveraging its global reach and security while abstracting technical complexity for enterprise users.
The company’s platform also emphasizes privacy and operational efficiency, with encrypted transaction execution and a flat-fee model paid in USDT, shielding clients from network volatility. This is particularly relevant for high volume users such as exchanges and payment processors, where cost predictability and transaction speed are critical.
With the newly raised capital, Utexo plans to scale its infrastructure beyond the UAE and expand adoption among global financial institutions and payment platforms. The funding round places the startup alongside a growing cohort of blockchain infrastructure companies working to bridge gaps between traditional finance and decentralized networks, as demand for real time, cross border digital payments continues to rise.
