UAE-based blockchain infrastructure startup Utexo has secured $7.5 million in Seed funding to accelerate the development of stablecoin payment infrastructure built on the Bitcoin network.
The round was led by Tether, the issuer of the USDT stablecoin, and included participation from global investors such as Big Brain Holdings, Portal Ventures, Franklin Templeton, Maven11 Capital, and Fulgur Ventures.
Bridging USDT Payments with Bitcoin Infrastructure
Utexo is building infrastructure that enables digital wallets, cryptocurrency exchanges, and payment providers to process USDT transactions directly on the Bitcoin network.
Through its API-driven software platform, financial institutions can integrate stablecoin payments into their systems without rebuilding existing compliance frameworks, custody models, or payment architecture.
Rather than creating a new blockchain ecosystem, the company focuses on connecting existing USDT transaction flows with Bitcoin’s base infrastructure, aligning closely with Tether’s strategy of expanding USDT functionality across the Bitcoin network for global dollar payments.
Leveraging Layer-2 Networks for Speed and Privacy
To improve scalability and transaction efficiency, Utexo relies on Layer-2 technologies including Lightning Network and RGB, allowing stablecoin payments to settle in under a second while significantly reducing transaction costs.
The system also incorporates encrypted data layers that enhance privacy by masking transaction participants and operational data.
Utexo offers a flat-fee pricing model paid in USDT, designed to protect enterprise clients from fluctuating blockchain network fees and provide predictable operating costs for high-volume cross-border payments.
Building the Next Layer of Crypto Payment Infrastructure
Founded in the UAE, Utexo is focused on building enterprise-grade infrastructure connecting stablecoins and Bitcoin. Its platform enables payment companies and financial institutions to process instant, private, and compliant USDT transactions using Layer-2 technologies.
As stablecoins continue to gain traction for cross-border payments, infrastructure providers like Utexo are emerging as key players in bridging traditional financial services with blockchain-based settlement systems.
Source: Jawlah
