Tether USDT Returns to Bitcoin as Morgan Stanley Shows Interest

Viktor Ihnatiuk, the chief executive of Utexo, stated that he held a meeting with Morgan Stanley in Washington, D.C., regarding USDT on Bitcoin. Ihnatiuk said the discussions involved Utexo collaborating with the bank on adoption across Europe and worldwide.

Paolo Ardoino, Tether's CEO, shared the post on X. He described USDT as "coming home" to Bitcoin, the network where it was originally launched in 2014.

USDT was initially issued by Tether on the Omni Layer, a protocol constructed on top of Bitcoin. Later, the majority of its supply migrated to Ethereum and Tron, and Tether 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 Is Significant

Utexo develops the infrastructure that supports USDT on Bitcoin, enabling wallets, exchanges, and custodians to transfer the stablecoin via the Lightning Network. The system uses RGB, a protocol for issuing assets on Bitcoin while maintaining transaction data off-chain.

According to the RGB Protocol Association, Tether led the startup's $7.5 million seed funding round, with Big Brain Holdings and Portal Ventures also participating. Franklin Templeton also invested in the round.

Utexo integrated its RGB Lightning module into Tether's Wallet Development Kit (WDK) in August, a toolkit that developers utilize to create self-custody wallets. Ihnatiuk previously founded the software company Boosty Labs before establishing Utexo.

Morgan Stanley has expanded its crypto involvement this year, launching its own spot Bitcoin ETF in April and introducing E*Trade crypto trading in May.

Challenges Facing USDT on Bitcoin Adoption

The product is still unavailable to the majority of users. Utexo has designated UniSat, a wallet known for Bitcoin Ordinals and tokens, as its upcoming launch partner. The team reports that UniSat has over one million weekly active users. A release date has not been announced by either company.

Tether initially unveiled its RGB plans in August 2025, with Ardoino describing the initiative as an enhancement in privacy and scalability.

"Bitcoin deserves a stablecoin that feels truly native, lightweight, private, and scalable."

Paolo Ardoino, Tether

The RGB protocol has now reached the Bitcoin mainnet.

This effort aligns with Ardoino's broader strategy. He has dismissed the idea of a Tether blockchain, preferring to utilize existing networks.

Europe may present greater challenges. Tether opposed a bank-deposit requirement within the EU's Markets in Crypto-Assets (MiCA) regulation, which has restricted USDT's availability in the region.

Morgan Stanley has not declared an official partnership with Utexo. Consequently, the UniSat launch could serve as the initial genuine assessment of demand for USDT on Bitcoin.