Tether Plans to launch GBPT a new stablecoin
June 23, 2022 6:23 AM
Tether is preparing to be part of the United Kingdom industry innovation with the country planning to start adopting stablecoins as a alternative means of payment.
Tether, the largest stablecoin company is expanding its offering with 'GBPT' a new stablecoin pegged to the British pound sterling.
In an official announcement by Tether on Wednesday, the firm reported that its upcoming GBP-pegged stablecoin, GBPT, will be launched in early July on the Ethereum blockchain.
GBPT will be a stablecoin pegged on the 1:1 ratio to the GBP, with its aim to provide a faster and cheaper option for asset transfers using the blockchain technology.
GBPT will become the fourth member of the Tether family, joining the likes of (USDT), the largest stablecoin by market capitalization. others include euro-pegged EURT, the offshore Chinese yuan-pegged CNHT and Mexican peso-pegged MXNT which was recently launched.
Additionally, according to the announcement, GBPT stablecoin will be developed by the team of developers behind Tether USDT and operate under its main website, Tether.to:
“ We want to help in leading this innovation by providing crypto users a worldwide access to a GBP pegged stablecoin which would be issued by the industry largest stablecoin issuer. Tether is ready and willing to work with regulators in United Kingdom to make this goal a reality."
The Tether announcement also mentions that HM Treasury in April 2022 announced plans to make the country a major cryptocurrency hub and introduce stablecoins into its regulatory framework. The U.Ks Economic and Finance Ministry seeks to amend its regulatory framework to adopt stablecoins as a means of payment in the country.
After the collapse of algorithm backed stablecoin UST, Tether USDT came under intense pressure as well while it de-pegged to around $0.93 the company was able to regain the pegged. However, the company's largest stablecoin has USDT dropped below $70 billion in terms of market capitalization for the first time in 2022 after hitting $80 billion in may 2021.
In contrast to algorithmic stablecoins like the failed UST, asset-backed stablecoins like Tether tokens are 100% backed by cash or cash equivalents.