The venture capital division of Gate.com, Gate Ventures, has announced a strategic investment in Utexo, a startup focused on enabling stablecoin settlement directly on the Bitcoin network.
The project is developing infrastructure intended to support private, near-instant, and non-custodial stablecoin transactions anchored to Bitcoin. The investment reflects growing interest in expanding Bitcoin’s role beyond a store-of-value asset toward broader financial infrastructure.
Stablecoins have become one of the primary mechanisms for settlement across digital asset markets, but most issuance and transaction activity currently occurs on smart-contract blockchains such as Ethereum and other account-based networks.
Infrastructure for stablecoin payments on Bitcoin
Utexo is building a settlement and execution layer designed to support stablecoin payments and trading within the Bitcoin ecosystem. The system combines the RGB protocol with the Lightning Network to enable asset issuance and transfers while relying on Bitcoin’s base layer for security.
RGB is a client-side validation protocol that allows digital assets to be issued and managed while anchoring their verification to Bitcoin transactions. By handling most transaction data off-chain, the model aims to improve scalability and privacy compared with conventional token standards.
When combined with Lightning’s payment channels, the architecture enables faster settlement and lower transaction costs. The approach also allows users to retain control of their funds, avoiding custodial arrangements often required by centralized platforms.
According to the project, the infrastructure is designed so developers, wallets, and financial services can integrate Bitcoin-based stablecoin payments without operating complex node infrastructure themselves.
Bitcoin-native financial systems
Stablecoins are widely used for trading, cross-border transfers, and liquidity settlement across digital asset markets. However, their activity has historically concentrated on networks designed around smart contracts rather than Bitcoin’s transaction model.
Utexo’s approach aims to extend the stablecoin economy to Bitcoin by enabling issuance, payments, and transfers through RGB-based programmable assets. The system allows stablecoins to move across Bitcoin-linked infrastructure while maintaining self-custody and improved transaction privacy.
Developers could potentially use the framework to build services such as decentralized exchanges, payment networks, or liquidity platforms that rely on Bitcoin’s security while offering stablecoin-based settlement.
As institutional adoption of both Bitcoin and stablecoins grows, projects that connect these two components of the digital asset ecosystem have attracted increasing interest from infrastructure investors.
Gate Ventures has focused its investments on infrastructure projects that expand the capabilities of decentralized networks and support the development of open financial systems.
The investment in Utexo aligns with several themes in its strategy, including Bitcoin-native financial applications, stablecoin settlement networks, and scalable payment infrastructure.
While Bitcoin remains the largest and most widely recognized blockchain network, many decentralized finance applications have emerged on alternative platforms in recent years. Infrastructure initiatives designed to support financial services directly on Bitcoin have therefore gained attention as the ecosystem evolves.
Through the investment, Gate Ventures plans to support Utexo’s development efforts, partnerships, and expansion into global markets. The firms say the collaboration aims to advance infrastructure capable of supporting stablecoin settlement and payment applications built on top of the Bitcoin network.
Dan Burgin
Vladislav Sopov
