Tether to launch USDT stablecoin on Celo blockchain

Stablecoin issuer Tether is set to launch its USDT -0.21% token on Celo CELO +28.99% , an Ethereum virtual machine-compatible blockchain that is in the process of transitioning to an Ethereum Layer 2 network.

The launch date for USDT on Celo is unclear, but a Tether spokesperson told The Block that it will happen "soon."

Tether rival Circle also announced earlier this year that it will launch its USDC stablecoin on Celo. 

Tether's Celo expansion will bring USDT to over a dozen blockchains, including Ethereum, Solana, Avalanche, Polygon, and Near. Last August, Tether discontinued support for the Kusama, Bitcoin Cash Simple Ledger Protocol and Omni Layer networks, citing a lack of demand, while redemptions on those networks will continue until August this year.

Celo was launched in 2020 with a focus on facilitating payments for mobile users. Celo maps phone numbers to crypto wallet addresses and claims to make sending payments as easy as sending a text at low, sub-cent transaction fees. "With Tether USDT soon available on Celo, users have even more options for fast, low-cost payments and access to robust stablecoin use cases that benefit everyday users around the world," Rene Reinsberg, Celo co-founder and Celo Foundation president, said in a statement.

Tether's USDT will join a range of Celo's native "Mento stable assets," including cUSD, cEUR, cREAL, and eXOF. The integration of USDT will expand the use cases of these assets, such as remittances, savings, lending and cross-border payments, Tether said.

Celo core contributors at cLabs are also planning to propose using USDT as a gas currency to streamline transactions within decentralized applications focusing on payments and lending.

Tether's Celo integration news comes as USDT's circulating supply has crossed 102 billion. The stablecoin's total supply, including authorized but not issued tokens, is over 108 billion.