Tether's U.S. dollar-pegged stablecoin, USA₮, has officially launched on the Celo blockchain, bringing native minting, burning, and transaction fee payment capabilities from day one. The deployment marks Celo as the second blockchain network to support USA₮ as a native asset, following Ethereum. USA₮, issued by federally chartered Anchorage Digital Bank, is a distinct product from Tether's flagship USDT, positioned as a U.S.-regulated dollar stablecoin designed to meet compliance requirements under tightening American and European oversight.

The integration is designed to streamline stablecoin transactions by allowing users to pay network gas fees directly in USA₮, eliminating the need to hold Celo's native token. This functionality is enabled by Celo Improvement Proposal 64 (CIP-64), a fee abstraction mechanism that permits users to cover transaction costs using supported digital assets. Fee abstraction has become a competitive differentiator among blockchain networks seeking to reduce friction for stablecoin users, as holding a separate governance or gas token has long been cited as a barrier to mainstream adoption. The Celo approach directly addresses that problem for stablecoin holders.

Celo Strengthens Its Position in Stablecoin Distribution

Celo has emerged as a major hub for stablecoin activity. During the second quarter of 2026, the network accounted for 28% of all USD₮ transfers across blockchain networks. Weekly active users of USD₮ on Celo rose by 67% over the same period, reinforcing the network's role as a significant distribution channel for Tether-linked assets. That volume places Celo alongside networks such as Tron and Ethereum, which have historically dominated stablecoin transfer activity.

This growth has been bolstered by integrations with consumer-facing wallets, including Valora and Opera-backed MiniPay. MiniPay, which serves approximately 18 million users, is expected to add support for USA₮ alongside its existing offerings of USD₮ and Tether Gold (XAUt0).

More than half of all transaction fees on Celo are already paid using stablecoins, predominantly USD₮ — a trend that underscores how central stablecoins have become to the network's economic activity and their potential to drive broader adoption of digital assets for payments and financial services.

The integration is expected to expand access to a regulated U.S. dollar stablecoin across Celo's mobile-focused payment infrastructure, including applications for remittances, savings, and commerce. Anchorage Digital Bank stated that the stablecoin was structured to meet U.S. regulatory requirements, a positioning that distinguishes USA₮ from USDT, which has operated under Tether's international structure.

Marek Olszewski, Chief Executive Officer of Celo Core Co., said the deployment would bring a compliant U.S. dollar stablecoin to financial infrastructure already used by millions for cross-border transfers, savings, and commercial payments.

Tether Chief Executive Officer Bo Hines said the decision to expand USA₮ to Celo reflected the network's existing scale and its alignment with the stablecoin's broader objectives.

Celo announced the launch on X (formerly Twitter):

New Dollar. Proven Rails. From the back of a cab to anywhere you go, spend, send, and save with @usat on the world's most widely adopted network for stablecoin payments. USA₮ now live on Celo, issued by @Anchorage and backed by @Tether.

pic.twitter.com/rt064KP6Sq — Celo (@Celo) July 29, 2026

Stablecoin Expansion Targets Mobile Finance and DeFi

As of July 29, 2026, USA₮ was trading at approximately $0.9987, close to its intended $1 peg. Its market capitalization stood at $118.4 billion, representing an estimated 62% of stablecoins in global circulation. The stablecoin remains a critical source of liquidity across digital asset markets as regulatory scrutiny in the United States and Europe continues to intensify.

Earlier in July, Tether burned approximately $2.5 billion in USDT, reflecting adjustments tied to token supply, liquidity, and market demand.

Celo also shared the announcement on X:

BREAKING: USA₮ is now live on Celo! The US Dollar-backed stablecoin issued by @Anchorage & supported by @Tether is deployed on Celo, the most widely adopted network for stablecoin payments — with mint, burn & gas currency support on day one.

pic.twitter.com/KiIgpoCM7B — Celo (@Celo) July 29, 2026

Celo said the USA₮ deployment advances its objective of building programmable financial infrastructure for mobile users, particularly in emerging markets. Future integrations are expected to include decentralized finance platforms such as Uniswap and Morpho, which could provide additional applications for USA₮ across lending, trading, and other blockchain-based financial services. Those integrations would place USA₮ in competition with other regulated stablecoins vying for DeFi liquidity.

Developers can now begin integrating USA₮ into Celo-based applications. Future DeFi deployments are anticipated to expand the stablecoin's utility across payments, trading, and decentralized financial services.

The addition of USA₮ further solidifies Celo's position as a blockchain centered on stablecoin-based applications. With more than 90% of XAUt0 holders already using the network, the new deployment could elevate Celo's importance in distributing Tether-related assets.

The launch also highlights the expanding role of stablecoins in cross-border payments and decentralized finance. Market participants will be watching whether the ability to pay blockchain fees directly with a stablecoin drives adoption and encourages similar fee models on other networks.