The Problem

Why Existing Stablecoin Rails Fail for Business Settlement

Stablecoins are already used at global scale for payments, treasury operations, remittances, and internal settlement. USDT has become the dominant settlement asset across both crypto-native and cross-border payment flows.

Most stablecoin activity today runs on public blockchains with dynamic fee markets: transaction costs are determined by congestion and blockspace demand, which makes execution costs unpredictable. Fees change continuously and cannot be fixed in advance.

During periods of high usage, costs can increase by orders of magnitude.

For payment providers, this breaks the basic requirements of a payment rail: there is no fixed unit economics, no deterministic pricing model, and no way to offer flat fees to merchants or users.

As a result, blockchain networks with variable fee markets are unsuitable as primary settlement infrastructure for payment businesses.

Another blocker for B2B adoption concern privacy: all major stablecoin networks today operate on tranconcernssparent public ledgers.

Every transaction exposes balances, counterparties, and payment flows. For businesses, this leaks sensitive commercial information such as supplier relationships, customer volumes, treasury movements, and internal settlement activity.

This level of transparency is incompatible with payroll, B2B payments, PSP settlement, and enterprise treasury operations.

Bitcoin offers properties that payment operators already value: deterministic finality, strong censorship resistance, regulatory clarity, and the deepest global liquidity base of any blockchain network.

But despite this, there is currently no way to use USDT on Bitcoin in a way that is suitable for production payment systems, which require predictable execution costs, private settlement, and enterprise-grade security.

Stablecoin settlement is therefore forced onto alternative chains or custodial platforms, introducing additional trust assumptions, counterparty risk, and external execution dependencies.

Utexo exists to make stablecoin settlement costs predictable, independent of blockspace congestion while preserving Bitcoin’s security model.