Tether seeks support from regulators for the launch of a new stablecoin

Tether seeks support from regulators for the launch of a new stablecoin
Key facts:
  • Tether will launch its fifth token pegged to a fiat currency.

  • In 2021, the USDT token quadrupled its dollar-backed units.

Tether Operations Limited, the company behind the largest-cap stablecoin USDT, seeks to lead the cryptocurrency market by announcing that it will work with UK regulators on a new stablecoin.

In the report which he published today on his website, talks about a new currency that will be pegged to the British pound sterling called GBPT. It will be released in early July.

Tether’s new stablecoin will initially be powered by the Ethereum blockchain. With this there will be five tokens linked to fiat currencies that the company issued in its history. In addition there is the USDT pegged to the US dollar, the EURT linked to the euro, the CNHT linked to the Chinese yuan and the MXNT linked to the Mexican peso, which was recently reported by CriptoNoticias.

Last April, the UK Treasury announced on its website its plan to turn the country into a global hub for crypto asset technology. In The reportit was mentioned that the government announced measures that will make stablecoins a valid payment method, as part of its plan.

With this news, along with the great growth that the cryptocurrency market has had with respect to stablecoins in recent years, Tether sees the UK as a prime location for “the industry’s next wave of innovation”.

We believe that the UK is the next frontier for blockchain innovation and the wider implementation of cryptocurrencies for financial markets. We look forward to helping lead this innovation by giving crypto users around the world access to a stablecoin issued by the industry’s leading company. Tether is ready and willing to work with UK regulators to make this goal a reality and looks forward to continued adoption of Tether stablecoins.

Paolo Ardoino, CTO of Tether.

MXNT is Tether’s stablecoin pegged to the Mexican peso, which was recently launched on the Ethereum, Tron, and Polygon blockchains. Font: CoinMarketCap.

Tether leads the growth of stablecoins in the market

From its birth in 2014 to today, Tether (USDT) is the fastest growing and most adopted stablecoin in the entire market. Only in the past 2021, the stablecoin went from 21,000 million to 81,000 million units, that is, growing almost fourfold during that year, as reported by CriptoNoticias.

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It is because of this boom that CriptoNoticias also reported that both the European Union and countries such as Japan, the United States and the United Kingdom are among the first to regulate this sector of the cryptocurrency industry. This recent announcement by Tether demonstrates the willingness of the company behind the number one stablecoin to be regulated by foreign governments for wider adoption.

Tether seeks support from regulators for the launch of a new stablecoin
Stablecoin industry trading volume over the past five years, showing USDT (Tether) as the highest volume stablecoin in the entire market. Font: CoinGecko.

Governments set their sights on stablecoins after the UST case

This decision on the part of that Tether is possibly due, mainly, to the alarming and recent event that occurred with Terra USD (UST) that came to crash completely last May taking that stablecoin to a current price of $0.003, shows CoinMarketCap.

Tether seeks support from regulators for the launch of a new stablecoin
The collapse of the Terra ecosystem, mainly its stablecoin UST, generated many losses and aroused the desire of governments to regulate cryptocurrencies. Source: TradingView.

The fall of UST caused the Luna Foundation to liquidate its entire BTC reserve to try to recover its stablecoin, which was impossible, generating a fall for both the number one cryptocurrency and the rest of the market.

This caused the governments of different countries to seek to regulate cryptocurrencies, mainly stablecoins. Tether will take advantage of these regulations to be able to access new markets for the adoption of its stablecoins.