Tether Integrates USDT Stablecoin with Celo Network, Enabling Sub-Cent-Fee Microtransactions

Tether, a prominent stablecoin operator, has extended the reach of its $USDT stablecoin by collaborating with the Celo network, an Ethereum Virtual Machine (EVM)-compatible layer-1 network designed for fast and cost-effective payments.

Announced on March 11, this partnership is expected to greatly benefit $USDT users by introducing remarkably low transaction fees of around $0.001, facilitating microtransactions.

A source close to Celo underscored the network’s dedication to providing rapid, low-cost payments globally since its inception in April 2020.

Transitioning to an Ethereum Layer 2 solution, according to a spokesperson, will maintain low gas fees, crucial for achieving global prosperity and aligning with Celo’s community-driven mission.

The introduction of $USDT to the Celo ecosystem will expand the platform’s range of stable assets, which includes Mento’s eXOF and the cREAL, among others. These stable assets play a vital role in supporting remittances, savings, lending, and cross-border payments.

Rene Reinsberg, Celo co-founder and foundation president, expressed excitement about welcoming Tether $USDT to the Celo ecosystem, highlighting the additional options for users seeking fast, low-cost payment methods and the broader benefits for stablecoin use cases globally.

Specific details regarding the official issuance of $USDT on the Celo blockchain were not disclosed by Tether representatives. However, this move positions $USDT alongside 14 other blockchains supported by Tether, including Tron, Ethereum, Solana, and Avalanche, with Tron and Ethereum hosting the majority of $USDT circulation.

The integration comes amidst mounting concerns within the crypto community regarding escalating Ethereum network fees, particularly affecting Ethereum-based $USDT transactions, which require ETH for gas fees.

However, the Celo network’s EVM compatibility offers a degree of independence from Ethereum’s fee structure, providing relief from volatile gas fees, as noted by a Celo insider.

Tether’s strategic move into the Celo network coincides with the introduction of its major competitor, the Circle-issued USD Coin (USDC), to Celo, marking a significant period of growth and diversification for stablecoins on the platform.