USDT will be launched on the Celo blockchain: what are its advantages

The cryptocurrency market is anticipating the launch of the Tether (USDT) token on the Celo blockchain. Tether, the issuer of the largest stablecoin by market capitalization, USDT, has already announced the launch of its token on Celo, but the exact date has not been specified yet.

Against this backdrop, the aggregator Coinmarketcap notes the growth of Celo’s native token (CELO). It has reacted with an increase of more than 40% in 24 hours. The trading volume has grown by more than 2600%.

Several stablecoins pegged to African currencies and the Brazilian real are already operating on the Celo platform. These stablecoins are used in some African countries for remittances, lending, and consumer payments. For instance, this year, Circle, the issuer of USDT’s main competitor, integrated its stablecoin USDC on the Celo platform.

The use of USDT as a means of paying transaction fees on the network is being considered. The developer company cLabs has put forward this proposal to the blockchain community. According to Celo, the transaction fee on the network will be about $0.001. As a result, it is expected to increase the efficiency of decentralized applications (dApps) built on the Celo blockchain.

The Celo project was launched in 2017 by Rene Reinsberg and Marek Olszewski, who were employees of GoDaddy at the time. Olszewski is a professor at the Massachusetts Institute of Technology and a former top manager at Google. Celo’s payment solution infrastructure is primarily focused on mobile device users.

Initially, Celo raised over $46.5 million by selling approximately 120 million CELO tokens to private investors and through public sales. Venture firms a16z Crypto, General Catalyst, and Social Capital invested in the project.

Currently, the most popular network for issuing and circulating USDT tokens is the Tron blockchain. According to the DefiLlama service, the market value of stablecoins on the Tron network is $52 billion, and almost all of it is accounted for by USDT.

Tether stablecoin is also present on other blockchains, including Ethereum, Solana, Avalanche, Polygon, and Near. The collaboration between Celo and Tether could potentially lead to an increase in the overall use of stablecoins in the Celo ecosystem.

Overall, the integration of USDT opens up new prospects for the widespread use of stablecoins in various financial spheres, such as international transactions, savings, and lending.