Tether has introduced its USAT stablecoin on the Celo blockchain, not to launch a new product but to strengthen its regulated distribution network. This move leverages Celo’s existing infrastructure, which already accounts for roughly 28% of cross-chain USDT transfers, showing Tether’s focus on expanding compliance-ready assets rather than creating new financial innovations.
Celo's platform plays a key role in this strategy. It supports over 4.23 million weekly active USDT users and commands about 57.6% of stablecoin activity on its network. Thanks to CIP-64 fee abstraction, users can pay gas fees in any of 18 approved Celo-native ERC-20 tokens. Around half of the gas fees on Celo are settled in stablecoins, making it a natural home for USAT. By integrating USAT here, Tether positions the token as a native gas fee option, embedding it into the daily transactional flow of a high-usage blockchain.
Regulatory Compliance Underpinning USAT
USAT’s structure is designed to comply with the GENIUS Act, signed into law on July 18, 2025. It is issued by Anchorage Digital Bank, N.A., the only federally chartered crypto bank in the U.S. Reserves are securely held in U.S. financial institutions, with Cantor Fitzgerald acting as custodian and Deloitte providing monthly attestations on reserves. Tether USA’s CEO Bo Hines emphasized that both USDT and USAT meet the compliance standards required by this legislation.
With a circulating supply near $141 million, USAT represents Tether’s push for a regulated foothold in the stablecoin market. Meanwhile, competitors like Circle are focusing on intellectual property protections, recently acquiring over 680 IBM blockchain patent families to safeguard their position. These contrasting approaches reflect the broader GENIUS Act Compliance Squeeze, which is reshaping how stablecoin issuers operate in the U.S. regulatory landscape.
This material is for informational purposes and does not constitute financial advice.
