Tether Advances with USDT on Celo Network: A Leap into Economic Microtransactions

Tether, known for leading the stablecoin market, is expanding the horizons of USDT by partnering with Celo Network, a layer-one blockchain network that is compatible with the Ethereum Virtual Machine (EVM), built with a focus on fast payments and low cost.

This partnership, announced on March 11, promises to bring significant benefits to USDT users, especially through the introduction of extremely reduced transaction fees, less than one cent, approximately US$0.001, opening the door to microtransactions.

Celo, since its launch in April 2020, has been dedicated to providing an effective and cost-effective global payments solution. The transition to a layer 2 solution on Ethereum was highlighted by a spokesperson as a strategy to keep gas fees affordable, aiming for global prosperity and aligning with Celo’s community mission.

The integration of USDT into the Celo network adds even more diversity to the platform’s portfolio of stable assets, which already includes Mento’s eXOF and cREAL, among others. These assets are essential for facilitating cross-border remittances, savings, loans and payments.

Tether Token (USDT) to Launch on @Forehead

Read more: https://t.co/KJ5emdMmXl pic.twitter.com/yTDkzKnhev

— Tether (@Tether_to) March 11, 2024

Rene Reinsberg, co-founder and president of the Celo Foundation, expressed excitement about the arrival of Tether USDT on the network. “We are excited to welcome Tether USDT to the Celo ecosystem, which is quickly becoming a leader in stablecoins and real-world assets,” he said, highlighting the new options for users interested in fast and cost-effective payment methods, as well as the potential for scaling of stablecoin use cases benefiting individuals globally.

While specific details on when USDT will officially launch on the Celo blockchain have not been revealed, this initiative marks the expansion of USDT beyond the 14 already supported blockchains, including Tron, Ethereum, Solana, and Avalanche. This diversification comes at a time when the crypto community is expressing concern about the increase in network fees on Ethereum, which have impacted USDT transactions that require ETH to pay gas fees.

This strategic partnership between Tether and Celo is accompanied by the introduction of its main competitor, Circle’s USD coin (USDC), on Celo, signaling a period of important growth and diversification for stablecoins on the platform.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.