Utexo CEO Viktor Ihnatiuk stated that he held a meeting with Morgan Stanley in Washington to converse about USDT operating on Bitcoin. Ihnatiuk noted that the discussions centered around potential collaboration between Utexo and the bank regarding global and European adoption.
Paolo Ardoino, the CEO of Tether, amplified the post on X by stating that USDT is “coming home” to the Bitcoin network, which is where the stablecoin originally debuted in 2014.
Historically, Tether initially doled out USDT utilizing the Omni Layer—a protocol constructed on Bitcoin—prior to the majority of its supply migrating to Tron and Ethereum. Support for the Omni-based version was eventually discontinued by the firm in 2023.
Why Morgan Stanley’s Interest Matters
The technical foundation allowing wallets, custodians, and exchanges to transfer the stablecoin across the Lightning Network is built by Utexo. This system utilizes RGB, which is a protocol designed to issue assets on Bitcoin while ensuring that transaction details remain off-chain.
According to the RGB Protocol Association, Tether headed a $7.5 million seed financing round for the startup alongside Portal Ventures and Big Brain Holdings. Franklin Templeton also participated in the funding round.
Utexo integrated its RGB Lightning module into Tether’s Wallet Development Kit (WDK)—a software toolkit utilized by developers for crafting self-custody wallets—back in August. Before launching Utexo, Ihnatiuk established the software company Boosty Labs.
Meanwhile, Morgan Stanley has expanded its cryptocurrency involvement throughout the year. The financial institution introduced its own spot Bitcoin ETF in April and subsequently initiated crypto trading capabilities via E*Trade in May.
What Still Stands Between USDT on Bitcoin and Users
Despite these developments, the offering is not yet accessible to the general public. Utexo designated UniSat—a wallet widely used for Bitcoin tokens and Ordinals that boasts over 1 million weekly active users, according to the team—as its upcoming launch partner. A specific launch date has not been disclosed by either organization.
Tether initially unveiled its intentions regarding RGB in August 2025, when Ardoino described the initiative as an enhancement for both privacy and scalability.
“Bitcoin deserves a stablecoin that feels truly native, lightweight, private, and scalable.”
Paolo Ardoino, Tether
Since then, the RGB protocol has successfully deployed to the Bitcoin mainnet.
This endeavor aligns with Ardoino’s broader approach, as he has previously dismissed the creation of a dedicated Tether blockchain in favor of leveraging pre-existing networks.
Europe may present a greater challenge, however. Tether pushed back against a bank-deposit regulation embedded in the European Union’s Markets in Crypto-Assets (MiCA) legislation, which has restricted the availability of USDT within the region.
Because Morgan Stanley has not formally announced a partnership with Utexo, the upcoming integration with UniSat may serve as the initial genuine measure of market demand for USDT on Bitcoin.