Why Tether Chose Celo for USAT’s First Expansion Beyond Ethereum
Tether has expanded its GENIUS Act-compliant USAT stablecoin to the Celo blockchain, extending the regulated dollar-backed asset beyond Ethereum for the first time as competition intensifies among stablecoin issuers seeking broader payment and decentralized finance adoption.
Summary:
- Tether has launched its regulated USAT stablecoin on Celo, marking its first expansion beyond Ethereum.
- The integration enables users to pay network transaction fees directly in USAT through Celo’s fee abstraction.
- USAT is issued by Anchorage Digital Bank under the GENIUS Act framework and has a market capitalization of about $185 million.
- The move extends a regulated dollar-backed asset into Celo’s mobile-focused payments ecosystem.
USAT Brings Regulated Stablecoins to Celo
According to the official blog post, the launch allows USAT to be natively minted and burned on Celo while giving users the ability to pay network transaction fees directly in the stablecoin rather than holding the blockchain’s native token.
The functionality is enabled through Celo Improvement Proposal 64 (CIP-64), which introduced fee abstraction across the network. By removing the need to acquire a separate asset for gas payments, the upgrade reduces one of the most common points of friction for blockchain transactions.
USAT currently has a market capitalization of approximately $185 million, making the Celo deployment its first multi-chain expansion since launching on Ethereum.
Why Celo Was Chosen
Celo has positioned itself as a blockchain optimized for low-cost, mobile-first payments, particularly in emerging markets where smartphone-based financial services are growing faster than traditional banking infrastructure.
Celo has already become an established distribution network for Tether’s stablecoins, supporting a large share of the network’s active stablecoin users through applications such as Opera MiniPay. That existing user base provides USAT with immediate access to a payments ecosystem where Tether products are already widely used, making Celo a natural choice for the stablecoin’s first expansion beyond Ethereum.
The network already supports native gas payments in several stablecoins, including USDC, USDT, cUSD and cEUR. Adding USAT extends that model to a regulated U.S.-issued stablecoin while allowing users to continue transacting without purchasing the native CELO token.
Anchorage and Regulation Differentiate USAT
Unlike Tether’s flagship USDT, USAT is issued by Anchorage Digital Bank, the first federally chartered digital asset bank in the United States.
The stablecoin is designed to comply with the GENIUS Act, legislation that establishes a federal framework for payment stablecoins in the U.S. That regulatory positioning distinguishes USAT from many existing dollar-backed tokens and reflects growing demand for digital assets designed to operate within established banking rules.
READ MORE: How Digital Dollarization Challenges Global Capital Controls
By bringing a federally regulated stablecoin to a public blockchain, Tether is expanding beyond institutional or permissioned environments into a network built for everyday payments and decentralized applications.
Stablecoins Are Moving Beyond Trading
The launch also reflects a broader shift in how stablecoins are being used across blockchain networks.
Rather than serving primarily as trading pairs on cryptocurrency exchanges, stablecoins are increasingly functioning as payment instruments for everyday blockchain activity, including transaction fees, cross-border transfers and decentralized finance applications.
Networks including Base, Arbitrum and Optimism have introduced infrastructure that allows applications to sponsor or accept gas payments in ERC-20 stablecoins, while Celo has adopted a native protocol-level approach that enables supported stablecoins to pay transaction fees directly.
As more regulated issuers expand beyond Ethereum, competition is increasingly centered on usability, compliance and payment infrastructure rather than issuance alone.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Zdravkov
Reporter at CoinsPress
Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.
