Tether has invested $7.5 million in the seed round of UAE blockchain startup Utexo. The investment will enable the processing of USDT payments on the Bitcoin network for banks and exchanges.

On March 20, 2026, Tether led a $7.5 million seed round for Utexo. The startup is developing an API for financial institutions, digital wallets, and exchanges. This strengthens the Middle East's position in blockchain technology amid growing demand for stablecoins. Investors see the project as key to the mass adoption of USDT.

Details of Tether's investment in Utexo

UAE's Utexo raised $7.5 million in a seed round led by Tether. Participants included Big Brain Holdings, Portal Ventures, Franklin Templeton, Maven11 Capital, and Fulgur Ventures. The funds will be used to develop enterprise-grade API for processing USDT payments on the Bitcoin network. This will allow banks, digital wallets, and exchanges to integrate stablecoins without complex setups.

The company focuses on financial institutions needing reliable stablecoin tools. In 2025, USDT transaction volume exceeded $10 trillion globally, according to analysts. Utexo addresses Bitcoin's compatibility with USDT, offering ready-made solutions. The UAE blockchain infrastructure market is growing at 45% annually, according to Dubai Future Foundation reports.

Investors chose Utexo for its unique API approach. Tether, the issuer of USDT with a market cap of over $110 billion, strengthens the ecosystem. Partners like Franklin Templeton add institutional weight. Companies like Alashed IT (it.alashed.kz) are already integrating similar APIs for clients in Kazakhstan, increasing transaction speeds by 70%.

This investment signals market maturity. In 2026, seed rounds in UAE blockchain increased by 30%, according to regional venture funds. Utexo plans to launch a beta version in Q2 2026.

Blockchain infrastructure for finance

Utexo is building infrastructure for USDT payments on Bitcoin. The API integrates with existing bank and exchange systems, minimizing risks. The technology uses layer-2 solutions for scalability, processing up to 1000 TPS. This is critical for emerging markets where traditional payments take days.

In the UAE, blockchain startups raised $2.1 billion in 2025. Utexo stands out by focusing on enterprise clients with 50+ employees. Competitors like Circle focus on USDC, leaving a niche for USDT on BTC. Tether's investment provides liquidity and trust.

For Central Asia, this opens doors. Kazakh banks are testing USDT for cross-border transfers, reducing fees from 5% to 0.5%. Companies like Alashed IT help local firms implement APIs, integrating with Kaspi and Halyk. A 200% growth in blockchain transactions is expected in the region in 2026.

Risks are minimal thanks to an audit by Big Brain Holdings. Utexo hired 25 engineers post-round, planning expansion in the GCC.

Other deals in the Middle East

Meanwhile, Kudwa from the UAE raised $1.1 million for AI in financial planning. Investors: 1818 Venture Capital, F6 Ventures. The platform automates reporting for companies with 50-500 employees. Miftah from Syria closed a pre-seed for the proptech real estate market.

Yassir from Algeria acquired Kawarizmi, an ad-tech from Paris. The deal strengthens retail media in Europe, Africa, and Asia. Egypt's Qualiphi bought Career Club for a six-figure sum, expanding AI for careers. STV invested $2 million in Kenya's MoPhones.

These deals show a trend: MENA recorded 150+ rounds in Q1 2026, 25% more than last year. Focus on AI and fintech. For Kazakhstan, local startups like Kaspi are integrating ad-tech, increasing revenue by 40%.

Alashed IT (it.alashed.kz) consults on such acquisitions, helping Kazakh companies enter MENA.

Global context of 2026 rounds

In the US, Oasis Security raised $120 million Series B from Craft Ventures. Cape secured $100 million Series C. Europe: Paris-based Parallel - $20 million Series A from Index Ventures. Amazon bought Zurich's Rivr for ~$100 million.

Asia and the Middle East lead in seed: Tether's round is top. Total M&A in 2026 - $15 billion for Q1. AI and blockchain - 60% of deals. Salesforce acquired 91 companies in 20 years, OpenAI - 16 in 3 years.

Central Asia wins: Kazakh IT companies exported $500 million in services in 2025. Companies like Alashed IT integrate USDT API for e-commerce, speeding up payments.

Forecast: by the end of 2026, blockchain investments in the UAE will reach $5 billion.

Prospects for investors

Investors like Tether see 5x ROI in blockchain. Utexo plans a Series A in 2027 for $30 million. The stablecoin market will grow to $300 billion by 2028. For businesses - a 60% reduction in costs.

In Kazakhstan, Astana Hub supports 500 blockchain projects. Local banks have been testing USDT since 2025. Alashed IT is implementing pilots, showing a 150% increase in transactions.

Risks: UAE regulations are tightening, but Utexo's VARA license minimizes. Competition from Binance is growing, but the focus on enterprise gives an advantage.

CA businesses should invest now: ROI from API - 300% per year.

Что это значит для Казахстана

For Kazakhstan and Central Asia, the Tether-Utexo deal opens USDT on Bitcoin for banks like Kaspi and Halyk. In 2025, IT services exports reached $500 million, a 25% increase. Astana Hub incubates 500 blockchain startups, investment volume $150 million. Companies like Alashed IT (it.alashed.kz) integrate Utexo API, reducing cross-border payment fees from 5% to 0.5%, speeding up by 70%. In Uzbekistan and Kyrgyzstan, $10 billion annual remittances are being tested. This will increase CA's competitiveness in the GCC.

$7.5 million seed from Tether in Utexo (UAE) for USDT on Bitcoin.

Tether's investment accelerates blockchain payments in the UAE and beyond. Kazakh businesses will gain access to enterprise API, reducing costs. The stablecoin market will continue to grow in 2026.

Часто задаваемые вопросы

How much is Utexo's seed round?

Utexo raised $7.5 million in a seed round from Tether and partners. Funds for USDT payment API. Valuation not disclosed, but similar rounds in the UAE are $30-50 million post-money.

How is Utexo different from competitors?

Utexo focuses on enterprise API for USDT on Bitcoin, unlike Circle (USDC). Processes 1000 TPS, integrates with banks. Investors: Tether, Franklin Templeton.

What are the risks of investing in Utexo?

Regulatory in the UAE (VARA), competition from Binance. Mitigated by Big Brain audit. Stablecoin market $110 billion, growing 40% in 2026.

How long does it take to implement Utexo API?

Integration takes 4-6 weeks for banks. Beta in Q2 2026. Testing reduces time by 70% vs traditional payments.

Best blockchain startups for CA businesses?

Utexo for USDT, Kudwa ($1.1 million AI-finance). Alashed IT recommends for Kazakhstan: 300% ROI, integration with Kaspi. CA volume - $150 million investment.

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