Tether Expands to Celo Blockchain for Lower Transaction Fees
Tether, the operator behind the popular stablecoin USDT, has partnered with the Celo blockchain to bring USDT onto an Ethereum Virtual Machine (EVM)-compatible layer 1 network. This move aims to enhance microtransaction functionality by reducing transaction fees, further diversifying Tether’s presence in the blockchain ecosystem.
Leveraging Low Fees for Enhanced Usability
The integration of USDT into the Celo platform is significant because it offers a cost per transaction close to $0.001. This low transaction fee will greatly improve the feasibility of microtransactions, which is crucial for widespread adoption and financial inclusiveness. By utilizing Celo’s infrastructure, known for its speed and cost-effectiveness, Tether aims to extend the utility of USDT beyond traditional transactional models, potentially revolutionizing digital payments and remittances.
Celo’s commitment to keeping gas fees minimal while being EVM compatible ensures that operational costs are not impacted by Ethereum network fees. This feature contributes to the platform’s affordability and accessibility, aligning with its goal of promoting global prosperity through blockchain technology.
Expanding the Stablecoin Ecosystem on Celo
The addition of USDT to Celo’s ecosystem diversifies the range of stable assets available on the platform. Alongside unique solutions like Mento’s eXOF and cREAL, pegged to the CFA franc and Brazilian real respectively, this integration enables various use cases including remittances, savings, lending, and cross-border payments. Consequently, Celo solidifies its position as a platform for stablecoins and real-world assets.
Rene Reinsberg, one of Celo’s co-founders, expressed enthusiasm for the collaboration, emphasizing that Tether and Celo share a common goal of creating an inclusive financial system. The integration is expected to enhance payment efficiency and expand the range of stablecoin use cases accessible to users worldwide.
Tether’s Continued Blockchain Diversification
The launch of USDT on Celo represents another step in Tether’s ongoing effort to expand its presence across different blockchains. With existing support on platforms like Tron, Ethereum, Solana, and Avalanche, the addition of Celo further enhances the flexibility and usefulness of USDT while strengthening 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 exemplifies Tether’s proactive approach in response to evolving cryptocurrency requirements, particularly in addressing the need for low-cost and fast digital payment systems.
Hot Take: Tether’s Expansion Enhances Microtransactions and Promotes Financial Inclusivity
In partnering with the Celo blockchain, Tether takes a significant step towards improving microtransaction functionality and driving financial inclusiveness. By leveraging Celo’s low transaction fees and EVM compatibility, Tether aims to revolutionize digital payments and remittances by making them more accessible and cost-effective.
This expansion also strengthens the stablecoin ecosystem on Celo, offering users a wider range of stable assets for various use cases such as remittances, savings, lending, and cross-border payments. With Tether’s continued efforts to diversify onto different blockchains, USDT becomes more flexible and useful while contributing to the stability and decentralization of the stablecoin market.
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