Tether USDT Joins Celo Blockchain

Tether, a leading stablecoin operator, is expanding its stablecoin to different blockchain networks through a strategic partnership with the Celo network. Tether plans to launch its USDT stablecoin on Celo, which is an Ethereum Virtual Machine-compatible layer-1 network designed for fast and cost-effective payments. The integration with Celo will bring several advantages to USDT, including extremely low transaction fees of around $0.001, making microtransactions more feasible. Celo is known for its focus on fast and affordable payments globally, which aligns with Tether’s mission.

With this collaboration, Tether’s USDT will join other stable assets already available on the Celo platform, such as Mento’s eXOF, which tracks the CFA franc, and the cREAL, which tracks the Brazilian real. The use cases for stable assets on Celo range from remittances and savings to lending and cross-border payments. Celo co-founder and foundation president Rene Reinsberg expressed excitement about welcoming Tether USDT to the Celo ecosystem, noting that it expands the options for users to access fast and low-cost payments and stablecoin use cases that benefit people worldwide.

While Tether has not specified the exact date for the release of USDT on Celo, it is worth mentioning that its main competitor, USD Coin (USDC), announced its integration with Celo in January 2024. The first USDC on Celo became available on February 22. Tether currently supports 14 different blockchains, including Tron, Ethereum, Solana, Avalanche, and Omni. Tron and Ethereum are the two largest blockchains for USDT, accounting for 50% and 45% of all issued USDT, respectively.

This development comes at a time when the cryptocurrency community is increasingly concerned about high fees on the Ethereum network, especially as the price of Ether (ETH) exceeds $4,000. The rising ETH fees have also affected Ethereum-based USDT transactions, as they require ETH gas fees to be completed. By expanding to Celo and other blockchain networks, Tether aims to provide users with alternatives to mitigate the impact of high fees and enhance the usability and accessibility of its stablecoin.