Tether is Set to Launch a New Stablecoin Pegged to the British Pound

Tether will introduce a new stablecoin linked to the British pound, in the upcoming month - July. The stablecoin, known as GBPT, will initially be accessible on the Ethereum blockchain, according to a statement released by Tether today. After the US dollar-pegged USDT, euro-pegged EURT, offshore Chinese yuan-pegged CNHT, and the recently announced Mexican peso-pegged MXNT, this is Tether's fifth fiat-pegged stablecoin. https://twitter.com/Tether_to/status/1539503478711717888   Tether CTO Paolo Ardoino said in the statement,

"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 access to a GBP-denominated stablecoin issued by the largest stablecoin issuer."

Tether Offers Fiat-Pegged Stablecoins

Although Tether offers several fiat-pegged stablecoins, USDT is still the most widely used. However, recent panic over the demise of algorithmic stablecoin TerraUSD (UST) and the broader market slump has resulted in massive redemptions. The debut of Tether's GBPT coincides with a decline in market capitalization for its primary stablecoin, USDT, to levels below $70 billion for the first time since October 2021. In May 2022, the stablecoin's value surpassed $80 billion. The continued market downturn and unpredictability around stablecoins, brought on by the failure of algorithmic stablecoins like Terra USD, contributed to Tether's declining market cap. Asset-backed stablecoins, like Tether tokens, are fully backed by cash or currency equivalents like bank deposits, Treasury bills, and other assets, in contrast to algorithmic stablecoins.