- Tether has partnered with Celo to bring the USDT stablecoin to the network with sub-cent transaction fees.
- This integration has allowed microtransactions with USDT on Celo, enabling wider adoption for everyday purchases.
- Unlike Ethereum, Celo has allowed users to potentially pay fees with USDT itself.
The world of cryptocurrency payments is about to get a whole lot cheaper. Tether, a leading stablecoin issuer, has partnered with the Celo network. This collaboration aims to bring Tether’s USDT stablecoin, pegged to the US dollar, to the Celo blockchain, offering users significantly lower transaction fees.
Tether’s USDT Arrives on Celo Network
Celo, established in April 2020, is a blockchain network designed for fast and affordable payments. Unlike Ethereum, where transaction fees have skyrocketed recently, Celo boasts sub-cent fees, potentially as low as $0.001.
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This integration will allow users to conduct microtransactions with USDT on the Celo network, opening doors for wider adoption in areas like remittances and everyday purchases.
"We are thrilled to welcome Tether USDT to the Celo ecosystem," said Rene Reinsberg, Celo co-founder and foundation president. "This integration offers users more choices for fast, low-cost payments, ultimately benefiting people globally."
The arrival of USDT further strengthens Celo’s stablecoin ecosystem, joining existing assets like eXOF and cREAL, pegged to the CFA Franc and Brazilian Real, respectively. This variety gives users more options for conducting financial activities within the Celo network.
Tether has not yet revealed an official launch date for USDT on Celo. However, this partnership marks USDT’s 15th supported blockchain, joining giants like Ethereum, Tron, and Solana. Notably, Ethereum currently holds the majority of USDT circulation.
Celo Offers Escape from Ethereum’s Fees
Unlike Ethereum, Celo allows users to pay fees with various cryptocurrencies, including potentially USDT, offering a more user-friendly experience. While Celo is compatible with the Ethereum Virtual Machine (EVM), it operates independently from Ethereum’s fee structure, providing a welcome escape from the network’s current volatility.
The integration of USDT on Celo coincides with the arrival of USD Coin (USDC), another major stablecoin, on the network. This signifies a significant period of growth and diversification for stablecoins within the Celo ecosystem, paving the way for a future of faster, cheaper, and more accessible cryptocurrency transactions.
On the Flipside
- Celo’s ability to handle a significant influx of transactions due to USDT integration remains to be tested. Maintaining sub-cent transaction fees under high volume could be a challenge.
- Regulations surrounding stablecoins are still evolving. New regulations could potentially impact the usability of USDT on Celo.
Why This Matters
This partnership can potentially significantly reduce transaction costs for everyday cryptocurrency use. By enabling microtransactions with USDT on Celo, this integration could fuel wider adoption of crypto payments for remittances, online purchases, and even everyday interactions.
To learn more about Tether’s expansion strategy and the benefits of launching USDT on the Celo blockchain, read here:
Tether Eyes USDT Launch on ‘Mobile-First’ Celo Blockchain
To learn more about the debate around Tether’s USDT stablecoin and its recent $100 billion market cap, read here:
