- Tether has formed a strategic partnership with the Celo network to expand the distribution of its USDT stablecoin across various blockchain networks.
- Leveraging Celo’s layer-1 network compatibility with Ethereum Virtual Machine (EVM), developers can tap into existing ethereum tooling and smart contract capabilities, enabling seamless migration and fostering interoperability.
- The addition of USDT to Celo’s stable asset offerings expands the platform’s utility for cross-border payments, loans, savings, and remittances, empowering global users with seamless financial transactions.
OUR TAKE
Tether has formed a strategic partnership with the Celo network to expand the distribution of its USDT stablecoin across various blockchain networks. However, as with any innovative venture in the blockchain space, there are inherent implementation and scalability challenges that need to be carefully navigated. Integrating stablecoins like USDT into additional blockchain networks introduces complexities in ensuring seamless functionality and maintaining pegged value across diverse ecosystems. Moreover, regulatory scrutiny surrounding stablecoins continues to evolve, with policymakers worldwide scrutinising their potential impact on financial stability, consumer protection, compliance with anti-money laundering, and know your customer regulations.
–Sylvia Shen, BTW Reporter
Stablecoin provider Tether has forged a strategic alliance with the Celo network as it proceeds to distribute its USDT stablecoin across other blockchain networks.
Celo’s integration with EVM
Celo is a layer-1 network, compatible with Ethereum Virtual Machine (EVM), engineered to facilitate swift and economical payments. The integration with the EVM allows developers to leverage existing ethereum tooling and smart contract capabilities, fostering interoperability and enabling seamless migration from Ethereum to Celo.
USDT is part of the rapidly expanding stablecoin category. Unlike volatile cryptocurrencies, stablecoins like USDT stabilise their value by pegging it to traditional currencies such as the U.S. dollar.
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USDT to join Celo’s stable asset lineup
Tether announced on March 11, according to Cointelegraph. Tether stated that USDT will benefit from the new integration in several ways, including “notably low, sub-cent transaction fees” of about $0.001 that make practical microtransactions possible.
As Tether spokesperson said: “One of Celo’s core features since launching in April 2020 was its design for fast, low-cost payments worldwide. Indirectly, as an L2, there is a value sharing happening with Ethereum that’s not happening today as an L1.”
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The USDT will be added to the stable assets offered on the Celo platform, such as the cREAL, which monitors the Brazilian real, and Mento’s eXOF, which tracks the franc. Cross-border payments, loans, savings, and remittances are among the use cases for stable assets on Celo.
