Tether has launched its regulated stablecoin USA₮ on the Celo blockchain, extending the asset beyond Ethereum and adding a payments-focused feature that lets users cover network fees in the stablecoin itself. The move makes Celo the second blockchain to support native USA₮ and removes the need for users to first obtain a separate gas token before making transfers.

Launch on Celo

The rollout places a dollar-backed digital asset on a network that has been positioning itself around stablecoin use and cross-border payments. According to the source report, the native launch is aimed at making USA₮ easier to use for everyday transactions by reducing the extra steps usually required to move assets on-chain.

Under the new setup, users can pay gas directly in USA₮. That means a wallet funded only with the stablecoin can still send transactions without first swapping into another network token. The article frames this as a practical change for payment flows on Celo.

Compliance and custody structure

USA₮ operates under Anchorage Digital Bank, N.A., according to the report, and is described as following the requirements of the GENIUS Act. The reserves backing the stablecoin are safeguarded by Cantor Fitzgerald.

The Celo launch is part of what the source characterizes as Tether’s broader regulated stablecoin strategy. No additional details were provided in the report about issuance size or timing beyond the announcement of the expansion to Celo.

Celo’s stablecoin activity

The source article says Celo already accounts for 28% of all USD₮ transfers across blockchains. It also reports that the network posted 67% user growth in the second quarter of 2026.

Stablecoins are already playing a large role in how the network is used. More than half of all transaction fees on Celo are already paid with stablecoins rather than the chain’s native token, according to the report. Those figures are presented as evidence that the network has become a significant venue for stablecoin-based activity.

Wallets and DeFi integrations

The ecosystem rollout is expected to extend beyond the base launch. MiniPay plans to add USA₮ support, which would make the asset available as another payment option for the wallet’s more than 18 million users, the report says.

Valora already supports USA₮, while additional integrations are expected to follow with Morpho, Feather-curated vaults, Squid, and Uniswap. The article also notes that Celo holds more than 90% of unique holders for XAUt0, which it presents as a sign of rising demand for Tether-backed digital assets within the network.

The Celo expansion adds another distribution channel for USA₮ while tying the product more closely to payment and remittance-style use cases. It also highlights how stablecoin issuers and blockchain networks are increasingly competing on practical features such as native fee payments, wallet distribution, and compliance structure rather than on token launches alone.

Source: Coin Edition