UAE-based blockchain infrastructure startup Utexo has closed a $7.5 million Seed funding round led by Tether. The investment will support the company’s objective to facilitate direct stablecoin payments, specifically USDT, across the Bitcoin network. The round also attracted participation from global institutional investors including Big Brain Holdings, Portal Ventures, Franklin Templeton, Maven11 Capital, and Fulgur Ventures.
Quick Facts
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Round Details: $7.5 million Seed funding round.
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Lead Investor: Tether, alongside major global venture capital firms.
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Core Tech: Direct USDT stablecoin payments via the Bitcoin network.
Bridging USDT and Bitcoin Infrastructure
Utexo is developing software infrastructure that allows digital wallets, cryptocurrency exchanges, and global payment companies to process stablecoin transactions directly. Through its specialized API and software suite, financial institutions can execute USDT payments on the Bitcoin network without needing to rebuild their internal systems, compliance protocols, or custody models.
The startup focuses entirely on connecting current USDT transaction flows with Bitcoin’s foundational architecture. This strategy deliberately avoids building parallel infrastructures or engaging in market speculation, aligning heavily with Tether’s ongoing efforts to deploy USDT capabilities across the Bitcoin network for cross-border dollar payments.
Leveraging Layer-2 Technologies for Instant Settlement
To resolve traditional blockchain friction, Utexo utilizes secondary network protocols such as Lightning and RGB. These layer-2 integrations lower transaction costs and enforce strict user privacy by encrypting operational data and hiding participant details.
The company has introduced a flat-fee business model payable in USDT, protecting institutional clients from unpredictable network volatility. This technical setup guarantees instant transaction settlements that process in under a second, offering financial service providers the flexibility they need to manage high-volume international transactions.
About Utexo
Utexo is a UAE-based blockchain infrastructure startup focused on bridging the gap between stablecoins and the Bitcoin network. The company builds enterprise-grade APIs and software that allow payment providers and digital wallets to process USDT transactions instantly and privately. By leveraging layer-2 solutions like Lightning and RGB, Utexo provides financial institutions with scalable, compliant tools to execute cross-border digital payments without the friction of traditional blockchain networks.
Source: Jawlah
