Tether and Utexo Advance Bitcoin Settlement Rails for USDT Amid Morgan Stanley Talks

Tether and infrastructure firm Utexo are advancing dual technical frameworks to return the $184 billion USDT stablecoin to the Bitcoin network. Tether is focusing on the Taproot Assets protocol over Lightning, while Utexo is developing settlement rails using the RGB protocol alongside Lightning infrastructure. Neither initiative has confirmed a public launch date. The expansion follows preliminary discussions in Washington between Morgan Stanley representatives, Utexo, and Tether regarding USDT adoption on Bitcoin. Utexo, which secured $7.5 million in seed funding co-led by Tether, has lined up UniSat wallet as its initial launch partner.