UAE blockchain startup Utexo raises $7.5 M Seed funding from Tether

UAE-based blockchain infrastructure startup Utexo has closed a $7.5 million seed funding round led by Tether, with participation from Big Brain Holdings, Portal Ventures, Franklin Templeton, Maven11 Capital and Fulgur Ventures, Incubees reported on March 24, 2026. The investment is earmarked to accelerate Utexo’s development of payment infrastructure that enables direct stablecoin payment processing across the Bitcoin network, with a particular focus on USDT transactions.

"UAE-based blockchain infrastructure startup Utexo has successfully closed a $7.5 million seed funding round led by Tether," the Incubees report by Ila Dhond states, highlighting the breadth of institutional backing the round secured.

Context and technology details

Founded in the UAE, Utexo builds enterprise-grade APIs and software intended to bridge stablecoins and existing cryptocurrency frameworks without forcing financial institutions or payment providers to overhaul internal systems, compliance procedures or custody frameworks. The company targets digital wallets, cryptocurrency exchanges and global payment companies as early customers.

• Layer-2 integration: Utexo integrates Lightning and RGB protocols to reduce friction on the Bitcoin network.
• Performance claims: The platform is designed to deliver faster settlement speeds and lower transaction costs, enabling stablecoin payments to be processed in less than one second.
• Privacy and security: Utexo’s stack provides secure data handling and identity protection intended to preserve institutional privacy on international and high-value transactions.
• Pricing model: The company uses a simple flat-fee pricing system that can be paid in USDT to help institutions avoid volatility in network fees.

The combination of Lightning and RGB layer-2 protocols aims to address known limitations of on-chain Bitcoin settlement for stablecoins, improving throughput and reducing latency while offering interoperability with clients’ existing compliance and custody setups. By positioning its product as an integration layer, Utexo aims to make stablecoin rails accessible to firms that might otherwise be deterred by the complexity of direct blockchain custody or major system rewrites.

Outlook

With the new capital, Utexo plans to further develop its payment infrastructure and expand its services beyond the UAE, supporting broader adoption of stablecoins within global financial networks. The company’s backers — ranging from Tether to institutional names such as Franklin Templeton — signal confidence from both stablecoin issuers and traditional asset managers in Utexo’s approach to bringing programmable, Bitcoin-based stablecoin payments into mainstream financial workflows.