Tether launched its US-focused stablecoin USAT on the Celo blockchain this week, marking the token's first expansion beyond Ethereum. This move brings native minting and burning capabilities to Celo, eliminating the previous reliance on bridged tokens and their associated risks.
Users on Celo can now pay gas fees directly with USAT thanks to the network’s CIP-64 upgrade, which enables selected ERC-20 tokens to serve as transaction currency. This feature simplifies payments by removing the need to hold a separate native token for fees.
Growing Presence on Celo
Since its January debut, USAT has grown to a market cap around $185 million. Tether's CEO Bo Hines highlighted Celo's vibrant digital dollar ecosystem and its daily user base as key reasons for the rollout. Tether has also invested $7 million through Pact Labs to push USAT into US payroll payment solutions.
Celo has quickly become a dominant platform for Tether products. It accounts for 28% of cross-chain USDT transfers and hosts over 90% of the market for Tether Gold’s omnichain token XAUt0. Tether’s transparency reports show nearly $470 million in authorized USDT on Celo, underscoring its growing role.
The USAT launch on Celo offers users a more smooth experience for digital dollar transactions and further cements Tether’s strategy to integrate with networks where stablecoin payments thrive.
Disclaimer: This article is for informational purposes and does not constitute financial advice.
