Currently the most popular and major stablecoin is USDT which is very popular among investors. Currently, the stablecoin operator Tether is integrating with various blockchain networks and is expanding its USDT stablecoin across all blockchains. And it is currently entering into a strategic collaboration with Celo Networks as a new venture. Tether is USDT which is essentially pegged to the US dollar. Now it comes with a new good news and as part of that good news it is going to be included in the Celo blockchain. Celo is an Ethereum Virtual Machine (EVM)-compatible layer-1 network designed for fast and low-cost payments.
Two days ago an announcement about this came from Tether. They noted in their announcement that the new integration brings many benefits to USDT among the initiatives they have undertaken. They offer some attractive benefits to their customers and those benefits include remarkably low, sub-hundred transaction fees" hovering around $0.001. Which enables potentially smaller transactions.
Celo was originally launched in April 2020. It brings a lot of benefits to the customers after its launch. All the benefits it offered were quite attractive and one of its main features was fast, low-cost payments worldwide. It was designed with these benefits in mind. However, a Celo spokesperson claimed that, as a Layer 2, there is a cost sharing with Ethereum. As a result it is not yet happening as layer 1.
We know that nowadays the layer based platforms or the coins involved in it have become very important especially the transaction fees have been reduced to a large extent. For example if an Ethereum migrates to L2, the gas fee will be lower. And as a result of such benefits, these countries become popular and they gain prosperity worldwide. So it becomes quite important for a community even for the Celo community it is the core of the mission. Celo also plays a key role in the use of stable assets and utilizes a number of facilities including remittances, savings, loans and cross-border payments. USDT will join an array of stable assets available on the Celo platform.
The involvement of Tether USDT in the SELO ecosystem is quite important. That's what Celo's co-founder and foundation president admits. He said that we are thrilled with this kind of initiative. Because currently usdt is very popular and strong stablecoin. It is now gaining ground in real-world assets as well as growing in popularity.
Such initiatives will play a vital role in providing fast, low-cost payments to users and use of strong stablecoins. Customers will be able to enjoy all these benefits with Tether USD soon available on Cello. If Celo and USDT merge, investors will be able to enjoy the benefits of fast, low-cost payments. However, a Tether representative declined to say when their first batch would be issued and live on the Celo blockchain.
Earlier such initiatives were taken with other stablecoins on the Cello blockchain. Cello announced a native launch on the blockchain earlier this year. The first USDC became available on Celo last February Celo-based USDT will join the 14 blockchains currently supported by Tether. But the important ones here are Tron, Ethereum, Solana, Avalanche and Omni. But Tron and Ethereum are the largest blockchains for this important and popular stablecoin. Today these two blockchains account for 50% and 45% of issued USDT respectively for these stablecoins.
Ether ( ETH ) has now surpassed its previous all-time high price and is currently trading above $4,000. But this network had high fees. The crypto community has also complained about high fees on the Ethereum network. And in the meantime, this wonderful news has come. As a result it offers very fast and low transaction fees. But an important point here is that although Celo belongs to an EVM-compatible network, interestingly it does not depend on Ethereum for network fees. An increase in fees on the Ethereum blockchain does not necessarily mean that L2 fees will increase. However this update is currently important. Hopefully investing in it will benefit greatly due to reduced transaction fees. However, you can read the news for details.