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HomeETHTether Expands USDT to Celo Network for Low-Cost, Fast Payments

Tether Expands USDT to Celo Network for Low-Cost, Fast Payments

Tether, a leading stablecoin operator, is broadening the reach of its USDT stablecoin through a new partnership with the Celo network, a move that promises to significantly lower transaction costs and facilitate microtransactions. The announcement, made to on March 11, highlights the integration with Celo, an Ethereum Virtual Machine (EVM)-compatible layer-1 network known for its rapid and cost-effective payment solutions.

This collaboration brings USDT to the Celo platform, where it joins a range of stable assets including Mento’s eXOF and cREAL, broadening the use cases for stablecoins in remittances, savings, lending, and cross-border payments. One of the key advantages of this integration is the notably low transaction fees on Celo, averaging around $0.001, making it an attractive platform for handling microtransactions.

Celo, launched in April 2020, has been designed with a focus on fast and affordable global payments. The network’s transition to an Ethereum Layer 2 (L2) solution is aimed at keeping gas fees low, which is essential for achieving the network’s mission of global prosperity. This strategic move indirectly facilitates value sharing with Ethereum, enhancing the benefits for both networks.

The partnership has been welcomed by Celo co-founder and foundation president Rene Reinsberg, who expressed excitement about adding Tether USDT to the ecosystem. He emphasized the importance of providing users with more options for efficient and low-cost payments and the role of stablecoins in supporting practical financial activities for people worldwide.

Although the exact timing for the issuance and launch of USDT on Celo has not been disclosed, the integration marks a significant expansion for Tether, which already operates across 14 blockchain networks. This expansion comes at a time when the crypto community is increasingly concerned about the high transaction fees on the Ethereum network, especially as the price of Ether surges past $4,000. By partnering with Celo, Tether aims to offer a more affordable and efficient alternative for USDT transactions, free from the direct impact of Ethereum’s network fees, and strengthen its position in the competitive stablecoin market.

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