<

Tether (USDT) Makes a Strategic Move to Celo’s Mobile-First Platform

Tether (USDT), the world’s largest stablecoin by market capitalization, is set to expand its reach by launching on the Celo platform. This move marks a pivotal moment for Tether as it joins a network that is not only mobile-focused but also transitioning to a layer-2 solution atop Ethereum, aiming to enhance scalability and reduce costs.

Celo, known for its commitment to creating a more inclusive financial system, is migrating from a standalone blockchain to a new layer-2 on Ethereum. The platform is designed with a mobile-first approach, targeting a global audience with an emphasis on emerging markets. This strategic alignment with Tether’s USDT is expected to broaden the utility of stable assets on the Celo network, which already includes Mento’s eXOF and cREAL, pegged to the CFA franc and the Brazilian real, respectively.

The integration of USDT into Celo’s ecosystem is anticipated to bolster the platform’s existing offerings, such as remittances, savings, lending, and cross-border payments. This expansion is not just a technical integration but a step towards enhancing financial inclusion by providing stable and accessible financial services to users worldwide.

USDT’s arrival on Celo comes shortly after the launch of its major competitor, Circle’s USD Coin (USDC), which went live on the Celo blockchain in January 2024. The first USDC became available on Celo on February 22, adding to the diverse stablecoin options on the platform.

With this launch, Celo-based USDT will be part of the 14 blockchains currently supported by Tether, including prominent networks like Tron, Ethereum, Solana, Avalanche, and Omni. Notably, Tron and Ethereum hold the lion’s share of USDT distribution, accounting for 50% and 45% of all issued USDT, respectively.

The timing of this launch is particularly relevant as the crypto community has voiced concerns over the rising fees on the Ethereum network, with Ether (ETH) prices surpassing $4,000. The high transaction costs have notably affected Ethereum-based USDT transactions, which require ETH gas fees for completion. The move to Celo is seen as a strategic response to these challenges, offering a potential reduction in transaction fees and an improved user experience for USDT holders.

Read more:

Join us on Telegram

Follow us on Twitter

Follow us on Facebook

Follow us on Reddit

You might also like