Tether to Issue a British Pound-Pegged Stablecoin

23.06.2022 15:45 (Updated 27.06.2022 15:06)
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by Gabriel Cross
2 min read

The industry’s largest stablecoin issuer, Tether, announced that it will be introducing a token pegged to the British pound next month. The stablecoin, GBPT, will initially be supported by the Ethereum blockchain.

This will be the fifth fiat currency-pegged stablecoin that Tether has launched. Until GBPT, Tether has launched stablecoins USDT (dollar-pegged), EURT (euro-pegged), CHNT (Chinese Yuan-pegged), and MXNT (peso-pegged).

Tether was inspired to launch the GBPT after the United Kingdom announced in April that it intends to become a “crypto asset technology hub”. Tether CTO Paolo Ardoino said in a statement that the ” United Kingdom is the next frontier for blockchain innovation and the wider implementation of cryptocurrency for financial markets”.

Stablecoins have taken a significant portion of the market cap recently. Three of the six top coins currently are pegged by the U.S. dollar, with Tether’s USDT being the leading one. Since May, USDC’s market cap has increased by 5%.

This is despite the high-profile collapse of what used to be the third-largest stablecoin, Terra’s UST, early last month. The collapse sparked the redemption wave, as investors began to lose faith in stablecoins, in general. However, according to Ardoino, Tether can handle redemption waves “without the blink of an eye”, while also maintaining its peg.

Author

  • Gabriel Cross used to be a bank officer for an international bank for many years. From this point of view, he says the time spent obtaining a degree in economics was a waste of time. A few years back, he decided to quit his job and start trading. He is obsessed with decentralized finance, but he often plays with the stock market, investing with great pleasure into ground-breaking tech solution startups.

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