Utexo, a blockchain infrastructure startup based in the UAE, has closed a US$7.5 million seed funding round.

The round was led by Tether, with participation from Big Brain Holdings, Portal Ventures, Franklin Templeton, Maven11 Capital, and Fulgur Ventures.

The funding will support Utexo’s development of systems for direct stablecoin payments on the Bitcoin network.

It will focus on USDT transactions and simplify integration for financial institutions and payment providers.

Founded in the UAE, Utexo provides enterprise APIs and software infrastructure.

Its platform allows digital wallets, cryptocurrency exchanges, and payment companies to process stablecoin payments without overhauling internal systems, compliance procedures, or custody frameworks.

A key feature of Utexo’s platform is its use of layer-2 protocols such as Lightning and RGB. These protocols aim to reduce transaction friction on the Bitcoin network.

These protocols settle transactions faster, reduce costs, and enhance privacy, allowing stablecoin payments to process in under one second.

The platform also offers secure data handling to protect institutional clients’ privacy during international and large-value transactions.

Utexo charges a flat fee payable in USDT, helping institutions avoid fluctuating network costs.

With the new capital, Utexo plans to expand its payment infrastructure beyond the UAE, supporting wider adoption of stablecoins in global financial networks.

Featured image credit: Edited by Fintech News Middle East, based on image by thanyakij-12 via Freepik