Tether’s USDT cuts gas fees to $0.001 on Celo platform

Tether’s USDT is set to launch on the mobile-focused layer-1 platform, Celo. This integration expands the use cases for stable assets on Celo, which includes remittances, savings, lending, and cross-border payments, with a particular focus on emerging markets.

Celo, currently migrating to a new layer-2 atop Ethereum, focuses on mobile-first accessibility and aims to provide multiple stable assets to users globally. The platform’s compatibility with the Ethereum Virtual Machine (EVM) ensures fast and low-cost payments, making it suitable for microtransactions and decentralized applications (dApps).

The integration of USDT on Celo is expected to improve transaction efficiency within dApps, with proposals from the Celo community to use USDT as a gas currency. This move aligns with Celo’s mission to facilitate accessible financial services, particularly in regions with limited access to traditional banking infrastructure.

Paolo Ardoino, CEO of Tether, said: “The integration of Tether USDT on the Celo platform, which is built for the real world, will represent a significant step forward in our mission. By leveraging the unique capabilities of Celo, we can further enhance the usability and accessibility of Tether for millions of people.”

Tether highlighted the benefits of this integration, highlighting notably low transaction fees, which are expected to be around $0.001, enabling feasible microtransactions. USDT joins other stable assets available on Celo, such as Mento’s eXOF and cREAL, catering to diverse user needs across different regions and currencies.

USDT has reached close to 100 billion in circulating supply, currently sitting at around 99.5 billion. Its market capitalization, which reached over $100 billion at one point, is calculated by multiplying the supply by the price.

Tether claims that all USDT tokens are pegged at a 1:1 ratio with the U.S. dollar. Including minted and authorized tokens, the total USDT supply amounted to 104 billion as of Monday, according to The Block’s data.

Tether CEO Paolo Ardoino stated that the company has issued 99.5 billion tokens, all of which are 100% covered by liquid assets, with the majority in U.S. Treasury bills.

BDO’s attestation confirmed that Tether’s $4.8 billion in outstanding unsecured loans at the year’s end were fully covered by these excess reserves. Tether expressed pride in having eliminated the risk of secured loans from its token reserves, a move in response to community concerns about this portfolio aspect.