Tether is launching a British pound-pegged stablecoin shortly after releasing the stablecoin pegged to the Mexican Peso as we can see more today in our latest Tether news.
Tether is launching a British pound-pegged stablecoin as a new product focused on the pound. GBPT will first work on top of Ethereum while other blockchain networks can be added in the future and the company’s announcement read that the new stablecoin will hit the market in July on the Ethereum blockchain. This will be Tether’s fifth fiat-pegged stable coin after the biggest market cap USDT and the euro-pegged EURT as the offshore Chinese yuan-pegged CNHT and the MXNT that saw the light of day and is pegged to the Mexican Peso. CTO Paolo Ardoino:
“We believe that the United Kingdom is the next frontier for blockchain innovation and the wider implementation of cryptocurrency for financial markets. We hope to help lead this innovation by providing cryptocurrency users worldwide with access to a GBP-denominated stablecoin issued by the largest stablecoin issuer.”
The company decided to explore the UK market after the Treasury plans to turn the nation into a global crypto hub which was confirmed by the UK fiannce minister. The country is looking to recognize stablecoins as a valid form of payment which is coming as a surprise since the Bank of England went against the industry many times in the past. As the name suggests, GBPT will be a stablecoin pegged 1:1 to the pound and USDT remains the biggest stablecoin in terms of marekt cap but the dominance was reduced in the last market crash while USDC increased its market share.
As recently reported, Since 2021, the stablecoin underwent a cascade of declines and according to the data from CoinGEcko, it shed around $4 billion since June 14th. TerraUST collapse pushed the market players to seek sanctuary in other digital assets which maintain a one-to-one peg with USD so as a result, the ensuing marekt contagion drove stablecoins to collapse during which USDT lost its dollar peg briefly and its dollar parity dropped to 95 cents. While it managed to re-peg, the death spiral resulted in most investors avoiding the stablecoin for USDC.
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