As the UK is shifting towards stablecoin regulation, crypto companies are trooping into the region. Recently, the country’s Ministry of Finance released plans to permit the usage of stablecoins for payment.
Meanwhile, the popular stablecoin issuer, Tether, has taken a step to position itself in the UK. The company has expanded its stablecoins by releasing a GBP-pegged stablecoin.
Tether To Issue GBP-Pegged Stablecoin In July
On June 22nd, the firm announced the GBPT, the GBP-pegged stablecoin. Meanwhile, Tether will launch the stablecoin in July on the ETH blockchain.
Additionally, the GBPT will be pegged at 1:1 to the Pounds. This project aims to provide a cheaper and faster means to transfer assets. Furthermore, this stablecoin joins the list of other currency-pegged tokens released by Tether.
Stablecoins that Tether has launched include the Peso-pegged stablecoin, MXNT, in Mexico. Others are the Yuan-pegged stablecoin, CHNT, the euro-pegged stablecoin, EURT, and the famous USDT.
As stated by the announcement, a group of developers would build the GBPT. These are the developers that developed the Tether USDT. Also, it would operate under the company’s website, Tether.to. The report added that:
“We want this innovation to provide users around the world with access to stablecoins. The GBP-pegged stablecoin would be accessible to everyone. The company is ready to work and cooperate with regulators in the United Kingdom. We want to make this real and look forward to more adoption of our stablecoins.”
According to Paolo Ardoino, Tether’s CTO, the UK is a good location that is ready for industrial transformation. He added that the country in April mentioned it would make the UK a crypto hub.
Recently, the UK announced its intention to regulate the stablecoin industry. Similarly, the UK’s Ministry of Finance announced plans to loosen its regulations. This amendment would make stablecoins suitable for payment purposes.
USDT Market Cap Drops Below $70 Billion
Tether’s GBPT release comes after the recent issue with the firm’s major stablecoin, USDT. The stablecoin’s market capitalization dropped below $70 billion recently. The last Time USDT’s market cap was below this amount was in 2021.
As of May 2022, the market cap was about $80 billion. The company’s shrinking market capitalization comes during the ongoing decline in the stablecoin market. This was after a major giant in the stablecoin ecosystem, Terra collapsed.
However, compared to the Terra USD, Tether’s USDT is an asset-backed stablecoin. It is backed 100% by cash equivalents such as Treasury bills, bank deposits, and others.