Tether's USAT Goes Live on Celo

Tether's US dollar token USA₮ went live on Celo on Wednesday, its first deployment on any chain other than Ethereum. The Block timestamped the launch at 10:06 ET and reported that the token is natively minted and burned on Celo, not bridged across from another network, and that it can be used to pay transaction fees directly on the chain. USAT is issued by Anchorage Digital Bank, a federally chartered crypto bank, and is held against cash, cash equivalents and US Treasuries. It launched on Ethereum in January 2026 and has grown to a capitalization of roughly $185 million. Bo Hines, chief executive of Tether US, said the token "is designed to operate in environments where digital dollars are already being used at scale."

A sibling built for the US rulebook

USAT and USDT are both dollar tokens from the same company, but they are built for different rulebooks. USAT is Tether's answer to the GENIUS Act, the US stablecoin law that requires issuers to back tokens with cash and short-dated Treasuries and to operate through a regulated entity. That is what the Anchorage charter and the narrow reserve list are for. USDT remains the offshore token, far larger and backed by a broader mix of assets, and it faces a compliance deadline of its own before the law's grace period expires in 2028. USAT is not a migration path for existing USDT holders. It is a separate instrument aimed at US institutions and US-facing payment flows, and Tether has named the $11 trillion US payroll market as the target it is building toward.

Gas paid in the dollar itself

The technical detail that matters most for an ordinary holder is Celo's CIP-64 fee abstraction. On most blockchains, moving a stablecoin requires a second token to pay gas (the network fee charged for processing a transaction), so a wallet holding only dollars cannot transact at all until it acquires something else first. CIP-64 lets approved tokens act as the fee currency. A wallet holding nothing but USAT can send USAT. For a payments use case, that removes the step that most often strands new users: funding a wallet with a volatile asset they did not want in order to move the stable one they did.

Native minting and burning matters for a similar reason. A token that arrives on a chain through a bridge is a wrapper backed by units locked elsewhere, and it carries the risk of whatever bridge holds the collateral. A natively issued token is created and destroyed on the chain itself by the issuer, so the claim runs directly back to the reserves rather than through an intermediary contract.

Two pictures of the same chain

The two accounts of why Tether chose Celo do not line up, and both were reported. The Block described Celo as hosting about $470 million of authorized USDT, the eighth-largest chain for the token. crypto.news gave a different set of figures: Celo handles 28% of cross-chain USDT transfers, with about $78.8 million of USDT circulating on the chain and stablecoins accounting for 57.6% of its activity. The two do not reconcile. The choice of measure changes the story from scale to velocity. What both point to is a chain positioned around payment rails that settle in stablecoins, not around trading. Distribution is part of the case as well: Opera has launched a self-custodial Celo wallet reaching more than 18 million users.

$185 million against an $11 trillion target

The gap between USAT's current size and its stated ambition is the number to watch. At roughly $185 million, the token is a rounding error next to USDT and next to the payroll market Tether has described, and a second mainnet does not by itself change that. One report also put Tether at the head of a $7 million Series A for Pact Labs in July. That detail rests on a single source. The harder question is whether US institutions adopt a compliant dollar token issued through a chartered bank quickly enough to matter before the 2028 deadline reshapes what they are permitted to hold at all.