A Bitcoin-native protocol enabling USDT transactions has joined CTDG Dev Hub, a developer-focused technical hub run by Cointelegraph to support experimental protocol design and infrastructure research.
The project, called Utexo, is exploring how stablecoin transfers can operate natively on Bitcoin by combining the Lightning Network’s payment channels with the RGB protocol’s client-side asset model.
The approach aims to move USDT on Bitcoin without relying on wrapping or bridging, which introduce intermediaries and additional security risks.
Utexo uses the Lightning Network for fast, low-cost execution while RGB handles asset issuance and transfers off-chain, with Bitcoin’s base layer acting solely as the final settlement and security anchor.
By separating execution from Bitcoin’s congested base layer, the design seeks to make transaction costs less sensitive to mempool conditions as usage scales.
The protocol bundles Lightning and RGB functionality into a single SDK and REST API, reducing the operational burden typically required to manage nodes, channels, liquidity and client-side validation.
Through its participation in CTDG Dev Hub, Utexo will engage with other developers to review and refine its Bitcoin-native USDT model as part of broader experimentation around Bitcoin-based applications.
At the time of reporting, Bitcoin price was $72,836.80.