Tether introduces GBPT stablecoin backed by British pounds. It supports Ethereum blockchain and would be accepted as a form of payment.
With the addition of a new cryptocurrency tied to the British pound sterling, leading stablecoin provider Tether is expanding its stablecoin offering (GBP).
The new GBP-pegged stablecoin, GBPT, will go live in early July and will initially support the Ethereum blockchain, according to a formal announcement made by Tether on June 22.
In order to offer a quicker and more affordable option for asset transactions, GBPT will be a reliable digital currency linked in a 1:1 ratio to the GBPT.
The largest stablecoin by market capitalization, USDT, and the other four fiat currency-pegged Tether tokens are now joined by GBPT. Other stablecoins include the offshore Chinese yuan-egged CNHT, the euro-pegged EURT, and the recently announced MXNT, which is pegged to the peso of Mexico.
The developers who created Tether USDT will create GBPT, and it will function under Tether.to, the company’s main website.
“We hope to help lead this innovation by providing cryptocurrency users worldwide with access to a GBP-denominated stablecoin issued by the largest stablecoin issuer […] Tether is ready and willing to work with U.K. regulators to make this goal a reality and looks forward to the continued adoption of Tether stablecoins”.
The UK is a key site for the upcoming wave of industry transformation, said Paolo Ardoino, chief technical officer of Tether, adding:
The release also notes that in April 2022, HM Treasury revealed ambitions to turn the nation into a hub for cryptocurrencies worldwide and include stablecoins into its regulatory framework. In order to accept stablecoins as a form of payment, the Economic and Finance Ministry of the United Kingdom intended to modify its regulatory framework.
The debut of Tether’s GBPT coincides with the main stablecoin of the firm, USDT, falling below $70 billion in market capitalization 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.