Tether stablecoin USDT is coming to the Celo blockchain.
Major stablecoin operator Tether continues to expand its USDT stablecoin across multiple blockchain networks through a strategic partnership with the Silo network.
Tether (USDT) on Silo, an Ethereum Virtual Machine (EVM) compatible layer-1 network designed for fast and low-cost payments.
Announcing the news to Cointelegraph on March 11, Tether noted that the new integration would bring several benefits to USDT, including “exceptionally low, sub-cent transaction fees” hovering around $0.001, enabling possible microtransactions.
“Since its launch in April 2020, one of the main features of Silo has been its design for fast and low-cost payments,” a source close to Silo told Cointelegraph. “Indirectly, like L2, there's a value sharing with Ethereum that's not like L1 today,” the spokesperson said.
“Gas fees will remain low during the transition to Ethereum L2, a key to global prosperity and the mission of the Cielo community.”
USDT joins stable assets on the Celo platform, including Mento's eXOF, which tracks the CFA franc, and cREAL, which tracks the Brazilian real. The uses for stable assets on Silo include money transfers, savings, loans and cross-border payments.
“We are excited to welcome Tether USDT to the Silo ecosystem,” said René Reinsberg, Silo Co-Founder and Foundation President.
“With Tether USDT soon available on Celo, users have more options for fast, low-fee, and strong stable coin use cases that benefit everyday users around the world,” Reinsberg said.
A representative for Tether declined to say when the first batch of USDT would be released and go live on the silo block.
Related: Tether Launches Recovery Tool to Transfer USDT Between Blockchains
USDT's main competitor, Circle Issued USD Coin (USDC), has announced its native launch on the Xelo blockchain in January 2024. Circle said the first USDC was in Shiloh on February 22.
Based on Xelo, USDT will join 14 blockchains currently supported by Tether, including Tron, Ethereum, Solana, Avalanche and Omni. Tron and Ethereum are the two largest blockchains for USDT, accounting for 50% and 45% of USDT, respectively, according to Tether Transparency.
The news comes as the price of Ether (ETH) crosses $4,000, with the crypto community complaining about high fees on the Ethereum network. Skyrocketing ETH fees have impacted Ethereum-based USDT as ERC-20 Tether requires ETH gas fees to complete USDT transactions.
Although Cello is an EVM-compatible network, there is no dependence on Ethereum in terms of network fees, according to a source close to Cello. “For example, if Ethereum fees rise, this does not mean L2 fees, some architectural choices, in the same way or out at all,” said the person.
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