Key Points
- Tether is preparing to launch its USDT token on the Celo blockchain.
- The integration will expand the use cases of Celo’s native assets and streamline transactions within decentralized applications.
Tether, a well-known stablecoin issuer, is gearing up to introduce its USDT token on the Celo blockchain. Celo is a blockchain that is compatible with the Ethereum virtual machine and is transitioning to an Ethereum Layer 2 network.
USDT’s Expansion to Celo
The exact date of USDT’s launch on Celo remains uncertain. However, it is expected to happen in the near future. This move follows a similar one by Circle, a competitor of Tether, which launched its USDC stablecoin on Celo earlier this year.
The integration of Tether’s USDT into Celo will extend its reach to more than a dozen blockchains, including Ethereum, Solana, Avalanche, Polygon, and Near. Tether ceased support for Kusama, Bitcoin Cash Simple Ledger Protocol, and Omni Layer networks due to lack of demand last year. Nonetheless, redemptions on these networks will still be possible until August this year.
Celo’s Focus and USDT’s Role
Launched in 2020, Celo aims to make payments easier for mobile users by mapping phone numbers to crypto wallet addresses. This allows for transactions with minimal fees. The integration of Tether’s USDT will provide users with more options for quick, low-cost payments and access to stablecoin use cases that can benefit people worldwide.
USDT will join a series of Celo’s native “Mento stable assets,” including cUSD, cEUR, cREAL, and eXOF. The addition of USDT will broaden the applications of these assets, such as remittances, savings, lending, and cross-border payments.
Core contributors at cLabs, associated with Celo, are also considering proposing the use of USDT as a gas currency. This would simplify transactions within decentralized applications that focus on payments and lending.
The news of Tether’s integration with Celo comes as the circulating supply of USDT has exceeded 102 billion. The total supply of the stablecoin, including authorized but not issued tokens, is over 108 billion.