Tether Expands Stablecoin Network with USDT Launch on Celo Platform
Summary:
Tether is launching its USDT stablecoin on the Celo network, optimizing transaction speeds and reducing costs. This strategic move paves the way for feasible microtransactions, with notably low fees. Tether USDT will augment the array of stable assets on the Celo platform, and facilitate use-cases including remittances, savings, loans, and international payments. The timeline for the Tether USDT rollout on the Celo blockchain remains undisclosed. The move comes amid increasing concerns over high Ethereum network fees.
Tether, a prominent stablecoin operator, is pushing forward with the distribution of its USDT stablecoin across multiple blockchain interfaces, following the establishment of a strategic alliance with the Celo network. Celo, an Ethereum Virtual Machine (EVM)-compatible network with layer-1 capabilities that emphasize on rapid, cost-effective transactions, will be the platform for Tether's USDT launch. On March 11, Tether shared with Cointelegraph that the new integration brings significant advantages to USDT, such as exceptionally low transaction fees around $0.001, making microtransactions more accessible. A source closely connected with Celo mentioned the network's design encourages fast, inexpensive global payments since its April 2020 inception. Moreover, the comments from the source suggested a shared value between Ethereum and Celo that does not currently exist. Notably, transitioning to an Ethereum L2 would maintain low gas fees, which is crucial for worldwide prosperity and aligns with Celo community's mission. Tether USDT will supplement the range of stable assets on the Celo platform, including eXOF from Mento that tracks the CFA franc and cREAL that monitors the Brazilian real. These stable assets on Celo facilitate remittances, savings, loans, and cross-border payments. Rene Reinsberg, Celo's co-founder and president of the foundation, shared his excitement about integrating Tether USDT into the ecosystem, which is rapidly gaining pace in the realm of stablecoins and real-world assets. The timeline for the Tether USDT first issuance on the Celo blockchain remains undisclosed by the Tether representative. Tether's main competitor, USDC, also confirmed a native launch on Celo in January 2024. The first batch of USDC was available on Celo starting February 22, as stated by Circle, the issuer of USDC. The USDT based on Celo will join Tether's extensive network that spans 14 blockchains, including Tron, Ethereum, Solana, Avalanche, and Omni. As per the Tether Transparency report, Tron and Ethereum are currently housing the majority of USDT, with 50% and 45% respectively. This development happens as the cryptocurrency community continually raises concerns about the escalating fees on the Ethereum network, following Ether (ETH) price crossing the $4,000 mark. The ETH's surging costs have also affected transactions associated with Ethereum-based USDT, as transacting ERC-20 Tether USDT requires ETH gas fees. On the bright side, Celo, despite being an EVM-compatible network, does not influence Ethereum network fees, shared a Celo insider. The person further elaborated that if Ethereum's fees surge, this does not necessarily mean L2 fees would experience the same growth, if at all.
Published At
3/11/2024 4:00:00 PM
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