The biggest stablecoin issuer in the world, Tether, will be launching a token that the British pound sterling supports, next month. According to a corporate announcement on Wednesday, the Ethereum blockchain will first handle the stablecoin GBPT.
The U.K Treasury reveals its ambitions to turn the nation into a major center for cryptocurrencies in April of this year. The government will take action to get stablecoins as a legal form of payment, as per its website. The United Kingdom is an ideal site for the upcoming wave of industrial innovation. It is because of this endeavor and the hundreds of millions of individuals that use cryptocurrency worldwide.
The sixth international currency stablecoin that Tether will be releasing is GBPT. They will be accompanying the Mexican-pegged peso MXNT, the U.S. dollar-pegged USDT, the euro-pegged EURT, and the Chinese yuan-pegged CHNT which they recently launched.
A stablecoin is a cryptocurrency that is exchangeable for a certain quantity of a less volatile financial product, such as fiat money. These coins will help enhance and facilitate blockchain transactions using traditional currency.
Global regulators are closely monitoring the advantages and dangers of stablecoins. It will start from their usage in cross-border transfers to unlawful transactions. Tether decides to adapt its services for the local currency. This happens after the UK declares its ambition to become a center for crypto asset innovation in April.
The Blockchain’s Upcoming Technological Frontier
Tether CTO Paolo Ardoino said in the statement that the UK is the next frontier for blockchain innovation. Thus, it is also the wider implementation of cryptocurrency for financial markets. Tether is always ready and willing to collaborate with UK regulators. They aim to make this goal a reality and look forward to the adoption of Tether stablecoins.
Stablecoins are taking up a bigger share of the total crypto market cap in recent months, as the vast majority of free-floating cryptos have receded in price. These are currently the three of the top six are dollar-pegged stablecoins.
Tether’s USDT remains to be the king. However, Circle’s USDC is fast approaching. The latter has experienced billions of dollars in coin redemptions since May, while USDC’s market cap increases by 5%.
Tether’s market worth decreases by 19% from the beginning of May, as per Decrypt research utilizing CoinGecko data. Nevertheless, USDC surges 5% and achieves an all-time high of $56 billion. This happens when it reaches a new record high of $83 billion.
This indicates that since May, the supply of Tether has been rapidly declining. This indicates that since the market meltdown, big investors have started liquidating their USDT investments. Additionally, the supply of USDC has grown, indicating a rise in demand.
Early last month, as investors began to lose trust in stablecoin holdings, Terra’s UST, the third-largest stablecoin at the time, collapsed. Ardoino, however, considers the incident to have demonstrated that Tether is capable of handling such repayments even without a blink of an eye while keeping its peg.
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