Tether, the operator behind the leading stablecoin USDT, has announced its expansion onto the Celo blockchain. This partnership brings up USDT in to an Ethereum Virtual Machine (EVM)-compatible layer 1 network known for its focus on fast and cost-effective payments. This move is set to improve microtransaction functionality by slashing transaction fees, a significant advancement in Tether’s blockchain diversification drive.

Leveraging Low Fees for Enhanced Usability

The USDT integration in the Celo platform is notable for the promise of cost per transaction close to $ 0.001. This will substantially improve the viability of microtransactions, a key factor for mass adoption in daily transactions and financial inclusiveness. By leveraging the infrastructure of Celo, which was designed for speed and cost-effectiveness from its outset, Tether targets to extend its utility beyond conventional transactional models that might revolutionize digital payments and remittances.

Celo’s commitment to keeping gas fees minimal while being EVM compatible also ensures that its operational costs are not affected by the fee structure of the Ethereum network. The feature is critical in the platform’s affordability and accessibility, which is consistent with the general objectives of promoting global prosperity through blockchain technology.

Expanding the Stablecoin Ecosystem on Celo

The addition of USDT to Celo’s ecosystem further diversifies the range of stable assets available on the platform, which includes unique solutions such as Mento’s eXOF and cREAL, pegged to the CFA franc and the Brazilian real, respectively. They enable several use cases, such as remittances, savings, lending, and cross-border payments, placing Celo in a strong position as a stablecoins and real-world assets platform.

One of Celo’s co-founders, Rene Reinsberg, welcomed the collaboration, saying that this partnership was proof that Tether and Celo shared the same goal to create an inclusive financial system. In addition, the integration is expected to increase payment effectiveness as well as widen the range of stablecoin use cases to which users from all over the globe will have access. 

Tether’s Continued Blockchain Diversification

The launch of USDT on Celo by Tether marks another step in its continuing effort to bring its presence to different blockchains. Having been on many platforms, including Tron, Ethereum, Solana, and Avalanche, the inclusion of Celo is just another one of Tether’s efforts to make its stablecoin usable in a variety of ecosystems. Through this approach, USDT becomes more flexible and useful, and it also strengthens the stability and decentralization of the stablecoin market.

As part of its broader mission, Tether continues to explore opportunities for reducing transaction costs and improving transaction speeds across its supported networks. The partnership with Celo serves as an illustration of Tether’s proactive approach in response to the changing requirements of the cryptocurrency environment, focused especially on resolving the crucial issue of low-cost and fast digital payment systems.

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The post Tether Announces USDT Launch on EVM-Compatible Celo appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am