Key Takeaways:
Tether announced on March 31 the expansion of its USAT stablecoin to the Celo blockchain, marking the digital asset's first deployment on an Ethereum Layer-2 scaling network.
"Moving USAT onto a leading Layer-2 like Celo allows us to offer users faster, cheaper transactions without compromising on security," a Tether spokesperson said. "This is a key step in making stablecoins more accessible for everyday payments and DeFi applications."
The USAT stablecoin is issued by Anchorage Digital, a federally chartered crypto bank, and is designed to be a regulated, U.S. dollar-backed digital asset. The integration with Celo, which transitioned to an Ethereum L2 in 2023, will receive infrastructure support from Google Cloud. This collaboration aims to ensure high reliability and performance for the stablecoin on its new network. The total circulating supply of USAT prior to this expansion was not disclosed.
This deployment is expected to significantly increase liquidity within the Celo ecosystem and make the network more attractive for developers building decentralized applications. The move signals a broader trend of major stablecoins leveraging Layer-2 solutions to address Ethereum's high transaction costs and scalability limitations, which could accelerate L2 adoption across the market and be a bullish catalyst for Celo's native CELO token.
This article is for informational purposes only and does not constitute investment advice.
