Tether said it will launch a new stablecoin pegged to the British pound sterling in early July, the issuer of the world’s largest stablecoin, USDT, announced Wednesday.
See related article: Tether market cap shrinks below US$70B, lowest since October 2021
Fast facts
- Tether’s announcement comes a week after Circle, the operator of the world’s second-largest stablecoin USDC, revealed it will launch a stablecoin pegged to the euro.
- “We believe that the United Kingdom is the next frontier for blockchain innovation and the wider implementation of cryptocurrency for financial markets,” Tether Chief Technology Officer (CTO) Paolo Ardoino said.
- Earlier this year, the U.K. Treasury announced plans to make the country a global crypto hub and will examine stablecoins as a valid form of payment.
- The sterling-pegged GBPT will become Tether’s fifth fiat-pegged stablecoin, joining the U.S. dollar, euro, Chinese yuan and Mexican peso.
- Since the collapse of Terra, USDT’s market capitalization dropped from around US$84.15 billion on May 12 to US$67 billion as of press time, according to CoinGecko.
- Unlike Terra’s fallen algorithmic stablecoin UST (USTC), Tether claims its USDT is backed by cash reserves, cash equivalents and other assets.
See related article: Tether USDT shaken by stablecoin market storm