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A local blockchain firm ready to hop on the stablecoin train just got backing from Tether. Blockchain infrastructure firm Utexo raised USD 7.5 mn in a seed funding round as it looks to develop systems to process stablecoin payments, just as the Central Bank of the UAE and local banks are pushing for stablecoin adoption, according to a press release. The funding round was led by stablecoin issuer Tether, with participation from Big Brain Holdings, Portal Ventures, Franklin Templeton, Maven 11 Capital, and Fulgur Ventures.
What does it do? Founded in 2025, Utexo develops software and APIs that allow digital wallets, cryptocurrency exchanges, and payment companies to process stablecoin transactions without changing their existing systems. It plans to develop systems for processing stablecoin payments, particularly USDT, directly on the BTC network.
Expansion on the horizon? The startup also plans to use the new capital to expand its payment infrastructure beyond the UAE and support wider stablecoin adoption in global financial networks.
Why the backers matter
Tether and Franklin Templeton are massive global players — Tether in the digital assets space and Franklin Templeton in asset management. Both have been involved in the region: Tether has an AED-pegged stablecoin in the pipeline as part of a partnership with Phoenix Group and previously led a USD 10 mn pre-seed round for local fintech startup Mansa.
Meanwhile, Franklin Templeton previously backed a local startup, investing USD 30 mn in Dubai-based rent-now-pay-later startup Keyper. It will also work with Saudi’s Public Investment Fund on up to USD 5 bn in local financial market investments.
And why the timing matters
The CBUAE recently approved its first licensed stablecoin — AE Coin — as a payment method across federal entities, shifting stablecoin use from selective use cases to state-level payment rails. This includes early adoption by Network International, 7X, Air Arabia, the Abu Dhabi Judicial Department, and Tawasul Taxis, as we’ve reported.
More stablecoins are coming: IHC, ADQ, and First Abu Dhabi Bank are developing a regulated AED token, while Rakbank is building an AED-backed stablecoin.
