Tether, a major stablecoin operator, is expanding its USDT stablecoin to different blockchain networks through a strategic collaboration with the Celo network. The launch of USDT on Celo, which is an Ethereum Virtual Machine (EVM)-compatible layer-1 network designed for fast and low-cost payments, brings several advantages to USDT. These include extremely low transaction fees of around $0.001, making microtransactions feasible. Celo’s design for fast and low-cost payments worldwide is one of its key features since its launch in April 2020. Additionally, Tether USDT will join other stable assets available on the Celo platform, including Mento’s eXOF and cREAL. The use cases for stable assets on Celo include remittances, savings, lending, and cross-border payments. Celo co-founder and foundation president Rene Reinsberg expressed excitement about welcoming Tether USDT to the Celo ecosystem, as it provides users with more options for fast and low-cost payments. The first batch of USDT to be issued and go live on the Celo blockchain has not been announced yet. Tether’s major rival, USDC, also announced its native launch on Celo in January 2024. Currently, Tether supports 14 blockchains, including Tron, Ethereum, Solana, Avalanche, and Omni. Tron and Ethereum are the two largest blockchains for USDT. The move to expand to Celo comes as the crypto community raises concerns about high fees on the Ethereum network due to the rising price of Ether (ETH). However, Celo offers a solution as it does not rely on Ethereum for network fees.
Celo blockchain welcomes the integration of Tether's stablecoin USDT.