Tether has undertaken the plan to become a multi-blockchain ecosystem. On this account, the stablecoin issuer has been adding technical support for various blockchain ecosystems. Tether is now working on collaborating with Celo blockchain that will enable sub-cent transaction fee feature for USDT and open the network for micro transactions. Celo is an EVM-layer 1 network to enable fast and economic payments.
The news published on Cointelegraph on 11th March has noticed a new strategic integration that will introduce new features for USDT investors. Some of these features include low transaction fees and allowing micro-transactions on the network.
Core Features of Celo Blockchain
A spokesperson for Celo network told Cointelegraph that the core features of the blockchain since the inception in 2020 April have been to enable fast, secure, and low-cost payments on an international scale.
The project further noted that there is an indirect value-sharing taking platform with Ethereum that does not take place as a layer-1. The spokesperson further added that switching to Ethereum layer-2 will ensure that gas stays low and critical to ensure international prosperity which is in-line with core mission of the Celo community. USDT is going to be one of the various stablecoin projects available on the Celo network.
Celo Blockchain to Host Multiple Stablecoins
Celo blockchain has hosted a multitude of stablecoin projects on the ecosystem inclusive of eXOF issued by Mento. This stablecoin tracks the performance of CFA franc. Another stablecoin on Celo is cREAL that tracks the performance of Brazilian fiat namely real. Celo has introduced various use cases for stablecoins such as remittances, savings, lending options, and cross-border transactions.
Celo co-founder and President Rene Reinsberg noted that the team is excited to welcome Tether to Celo blockchain. It is becoming a leader in stablecoins and real-world assets. Tether is set to get a listing on the Celo network after a while.
To this end, the users of USDT will be able to access fast, economical and secure stablecoin payments. At the same time, the investors will also be introduced to a barrage of practical use cases that benefit retail investors everywhere in the world.
However, the executive refrained from sharing the exact launch date of the USDT listing on Celo for the time being. Meanwhile, the second largest stablecoin project namely USDC is also opting for a Celo listing. This launch was announced in January, 2024.
Circle has informed the investors that the first USDC was available for listing on the network as soon as 22nd February. USDT has added technical support for various blockchains networks in the ecosystem with names like Ethereum, Tron, Solana, Avalanche, and Omni.
USDT to Become a Multi-Chain Stablecoin
Tron and Ethereum blockchains are two of the biggest networks associated with USDT that account for 50% and 45% of total issued USDT. These data projections have been issued and confirmed by Tether Transparency.
The news about the Celo launch has arrived with increasing concerns around fee inflation on the Ethereum blockchain. The highest transaction fee recorded on the blockchain can rise as high as $4000.
This factor may have an impact on Ethereum-based USDT. At the same time, it can make changes to the ERC-20 Tether USDT that requires ETH gas fees to complete transactions. Celo is an EVM-compatiable network and there is no dependency on Ethereum in terms of network fees as per resources issued by Celo network. In case, Ethereum fees rise it will not be in the form of layer-2 fees.
This change in layer-1 and layer-2 fee structure is one account of architectural choices that either rise in the same way or remain even at all times. An exclusive report published in Cointelegraph covered the $1 trillion on-chain trading volume record of Solana-based stablecoins on a monthly scale.
The statistics issued by Artermis indicated that the meteoric rise in these stablecoins is attributed to the use of digital trading bots that allow investors to automate trading with predetermined strategies.
