Utexo Raises $7.5M to Streamline Stablecoin Payments on Bitcoin Network

Mohammed Fathy

Last updated 15-03-2026

3 min

UAE startup Utexo raised $7,5m in Seed funding led by Tether.

It builds APIs enabling USDT payments directly on the Bitcoin network.

Secondary layers like Lightning promise “under a second” encrypted settlement.

A fixed-fee USDT model shields clients from network volatility.

The deal highlights rising demand for practical, dollar-linked digital payments.

UAE-based startup Utexo has secured $7.5 million in a Seed funding round led by Tether, with participation from Big Brain Holdings and Portal Ventures. The round also drew in heavyweight names such as Franklin Templeton, Maven11 Capital and Fulgur Ventures. For a young company building in the crypto infrastructure space, that’s not pocket change, it’s a signal.

Utexo is developing software infrastructure to enable stablecoin payments, particularly USDT, directly on the Bitcoin network. In simple terms, the company offers APIs and tools that allow digital wallets, exchanges and payment firms to handle stablecoins without having to rebuild their systems or change compliance and custody models. Anyone who has worked in fintech knows how much of a faff system overhauls can be, so the promise here is integration without disruption.

The startup is leaning on secondary-layer technologies such as Lightning and RGB to cut transaction costs and enhance privacy. Payments are encrypted, user data is concealed, and settlement is claimed to happen in under a second. That last bit is striking, Bitcoin isn’t exactly known for speedy base-layer transactions. And believe it or not, Utexo is also introducing a fixed-fee model paid in USDT, shielding clients from network volatility. In a market where fees can swing wildly, that could be spot on for institutions looking for predictability.

Rather than building a parallel ecosystem or chasing speculative trends, Utexo’s strategy is to plug existing USDT flows smoothly into Bitcoin’s infrastructure. It’s a more grounded approach, I reckon. Instead of reinventing the wheel, they’re trying to make the current one spin faster.

The move also fits into Tether’s broader efforts over recent years to expand USDT’s capabilities on Bitcoin rails. There has been growing interest across the sector in positioning Bitcoin as a foundation for cross-border dollar payments. On the flip side, some critics still question whether Bitcoin should carry that weight at scale, but the appetite from infrastructure players is clearly there.

For us at Arageek, stories like this hit close to home. I still remember speaking to an early-stage founder in the region who said integrating stablecoin payments into his platform was “ten times harder than building the product itself”. If startups like Utexo can remove even half of that headache, that’s a win for the ecosystem.

The MENA region has been steadily carving out a place in blockchain and fintech innovation, and deals like this one show that international capital is paying attention. Whether Utexo can deliver on its technical ambitions remains to be seen, of course. But with $7.5 million in fresh backing and a clear focus on practical infrastructure, the company is stepping into the arena at a time when demand for efficient, dollar-linked digital payments is definately not slowing down.

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