Tether's USA₮ Stablecoin Launches on Celo with Native Fee Payments

Tether's USA₮ stablecoin has launched on the Celo blockchain, offering native minting, burning, and transaction fee payment capabilities. This integration makes Celo the second blockchain to support USA₮ after Ethereum.

The feature is supported by Celo Improvement Proposal 64 (CIP-64), which enables users to pay transaction costs with supported digital assets. The approach aims to reduce friction for users who primarily hold stablecoins and may not want to acquire a separate blockchain token for transactions.

The USA₮ launch on Celo enables native token issuance, redemption, and gas fee payments, allowing users to transact without relying on Celo's native token for network fees. This deployment could strengthen stablecoin activity across Celo's ecosystem, which has focused on mobile-first financial applications and services aimed at improving access to digital payments.

Anchorage Digital Bank issued the USA₮ stablecoin, structured to meet U.S. regulatory requirements. The integration is expected to broaden access to a regulated U.S. dollar stablecoin across Celo's mobile-focused payment infrastructure.