Tether USAT launches on Celo as second mainnet

Tether’s US-focused USAT stablecoin has launched on Celo, marking its second mainnet deployment after Ethereum and extending the token to a network widely used for digital-dollar payments.

USAT adds native issuance and gas payments on Celo

Tether announced the USAT deployment on Wednesday, several months after the two companies disclosed plans for the launch in March. Celo becomes the stablecoin’s second supported mainnet following its initial rollout on Ethereum.

USAT holders will be able to use native mint-and-burn functions on Celo. Native issuance reduces the need to move tokens through third-party bridges, which can introduce additional technical and custody risks.

The token can also be used to pay transaction fees on the network. Celo introduced this function through its CIP-64 upgrade, which allows approved ERC-20 tokens to serve as gas currencies instead of requiring users to hold a separate network token.

“Expanding USA₮ to Celo was a deliberate decision,” Tether US CEO Bo Hines said in a statement.

“USA₮ is designed to operate in environments where digital dollars are already being used at scale, and that is what Celo has built, with hundreds of thousands of people transacting on the network every day.”

Celo already handles 28% of cross-chain USDT transfers

Celo has become Tether’s largest USDT distribution network by weekly active users since the flagship stablecoin launched on the blockchain in 2024, according to the announcement.

The network accounts for 28% of cross-blockchain USDT transfers. It also holds more than 90% of the market for XAUt0, the omnichain version of Tether Gold.

Tether’s transparency data lists about $470 million in authorized USDT on Celo, making it the token’s eighth-largest supported blockchain by that measure. Authorized tokens include inventory available for future issuance and do not necessarily represent the amount currently circulating.

Separate market estimates place Celo’s total circulating stablecoin supply near $136 million. USDT accounts for about $78.8 million, giving Tether a 57.6% share of that market.

Opera has also launched a self-custodial stablecoin wallet on Celo with Tether’s support. The product has reportedly reached more than 18 million users worldwide.

USAT targets regulated dollar payments in the US

USAT launched in January and has grown to a market capitalization of about $185 million. That remains a small fraction of USDT’s roughly $180 billion supply, but the two tokens serve different markets.

Tether designed USAT around the requirements of the US GENIUS Act. The stablecoin maintains reserves in cash or liquid cash equivalents, including US Treasury securities, to support one-to-one redemptions.

Anchorage Digital Bank, a federally chartered crypto bank supervised by the Office of the Comptroller of the Currency, issues the token. Hines joined Tether US after serving as executive director of the President’s Council of Advisers on Digital Assets from January through August 2025.

The regulated structure places USAT at the center of Tether’s effort to expand beyond crypto trading and into everyday US payments.

Tether extends USAT into the $11 trillion payroll market

As crypto.news reported in mid-July, Tether led Pact Labs’ $7 million Series A funding round alongside Blockchange Ventures and Lasagna. The deal aims to integrate USAT into payroll and payment systems used by American employers.

Pact Labs plans to let businesses process wages through blockchain payment rails while adding embedded digital wallets and related financial services. Tether is targeting a US payroll market that processes more than $11 trillion annually.

Celo’s low fees, mobile-focused design and existing stablecoin activity could provide another settlement network for those applications. The blockchain began as a Layer 1 in 2020 before moving to an Ethereum Layer 2 built on the OP Stack in March 2025.