Tether is supposed to be part of industry innovation in the United Kingdom as the country is planning to accept stablecoins as a means of payment.
Major stablecoin company Tether is increasing its stablecoin offering with a new cryptocurrency attached to the British pound sterling (GBP).
On June 22, Tether officially declared that its upcoming GBP-pegged stablecoin, GBPT, will launch in early July and will primarily support the Ethereum blockchain.
GBPT will be a stable digital currency pegged on the 1:1 ratio to the GBPT, directing to provide a faster and cheaper option for asset transfers.
GBPT joins a family of four other fiat currency-pegged Tether tokens, with the largest stablecoin by market capitalization, USDT. Other stablecoins include the euro-pegged EURT, the offshore Chinese yuan-egged CNHT as well as the lately launched MXNT, the Mexican peso-pegged stablecoin.
According to the declaration, GBPT will be built by the team of developers behind Tether USDT and operate under its main website, Tether.to.
“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”.
Paolo Ardoino, Tether chief technology officer pointed out the United Kingdom is a major location for the next wave of industry alteration.
The declaration also mentions that HM Treasury in April 2022 declared plans to make the country a global cryptocurrency hub and bring stablecoins into its regulatory framework. The United Kingdom’s Economic and Finance Ministry also planned to amend its regulatory framework to include stablecoins as a means of payment.
Tether’s GBPT promotion comes amid the company’s main stablecoin, USDT, dropping below $70 billion in terms of market capitalization for the first time since October 2021. The stablecoin previously reached a value above $80 billion in May 2022.
Tether’s shrinking market cap came within the ongoing market deterioration and uncertainty around stablecoins, triggered by failure of algorithmic stablecoins like Terra USD. On the contrary algorithmic stablecoins, asset-backed stablecoins like Tether tokens are 100% backed by cash or cash counterparts like bank deposits, Treasury bills and others.
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