Utexo CEO Viktor Ihnatiuk has stated that he met with representatives from Morgan Stanley in Washington to talk about bringing USDT back to Bitcoin. Ihnatiuk noted that the discussions focused on how Utexo could collaborate with the banking giant to drive adoption across Europe and around the world. Tether CEO Paolo Ardoino amplified the announcement on X, stating that USDT is returning to Bitcoin, the blockchain network where the stablecoin originally debuted in 2014.
Tether initially issued USDT via the Omni Layer protocol, which is constructed on top of Bitcoin, prior to shifting the majority of its circulating supply to Tron and Ethereum. Tether ultimately discontinued support for the Omni version in 2023.
USDT on Bitcoin. It’s coming home https://t.co/JnUo8og7Vv
— Paolo Ardoino 🤖 (@paoloardoino) September 24, 2026
Why Morgan Stanley’s Interest Matters
Utexo develops the foundational infrastructure for USDT on Bitcoin, enabling custodians, exchanges, and wallets to transfer the stablecoin across the Lightning Network. The infrastructure utilizes RGB, a protocol designed to issue assets on Bitcoin while maintaining transaction data off-chain.
According to the RGB Protocol Association, Tether spearheaded a $7.5 million seed financing round for the startup, with additional participation from Portal Ventures, Big Brain Holdings, and Franklin Templeton. In August, Utexo integrated its RGB Lightning module into Tether’s Wallet Development Kit (WDK), which is a software toolkit utilized by developers to construct self-custody wallets. Prior to launching Utexo, Ihnatiuk established the software development firm Boosty Labs.
Meanwhile, Morgan Stanley has expanded its footprint in the cryptocurrency sector throughout the year. The institution introduced its proprietary spot Bitcoin ETF in April and subsequently rolled out cryptocurrency trading services on E*Trade in May.
What Still Stands Between USDT on Bitcoin and Users
Despite these developments, the integration is not yet available to the general public. Utexo identified UniSat—a wallet widely used for Bitcoin tokens and Ordinals that boasts a user base of more than 1 million active weekly users—as its upcoming launch partner. Neither organization has disclosed a specific launch date. Tether initially unveiled its intentions regarding the RGB protocol earlier.
Frequently Asked Questions
Why is Tether bringing USDT back to Bitcoin?
Tether CEO Paolo Ardoino noted that USDT is returning to Bitcoin, the network where the stablecoin originally launched in 2014 before moving most of its supply to Ethereum and Tron.
What is Utexo’s role in bringing USDT to Bitcoin?
Utexo builds the infrastructure that allows wallets, exchanges, and custodians to transfer USDT over the Lightning Network using the RGB protocol, which keeps transaction data off-chain.
Who invested in Utexo?
Tether led a $7.5 million seed round for Utexo alongside Big Brain Holdings, Portal Ventures, and Franklin Templeton.
How is Morgan Stanley involved in cryptocurrency?
Morgan Stanley launched its own spot Bitcoin ETF in April and introduced crypto trading on E*Trade in May.
Is USDT on Bitcoin currently available to users?
No, the product is not yet live for most users, though UniSat has been named as the next launch partner. No release date has been shared.