Tether, the largest stablecoin issuer by market cap, unveiled on Wednesday a token linked to the British Pound (GBP). One GBP₮ token would be worth one British Pound Sterling, the company said in a statement. The launch is slated for early July.
Stablecoins are cryptocurrencies “pegged” to an asset like gold and oil, or to currencies issued by central banks like U.S. dollars, GBP, or Euros.
“We believe that the United Kingdom is the next frontier for blockchain innovation and the wider implementation of cryptocurrency for financial markets,” said Tether CTO, Paolo Ardoino.
Tether already has tokens pegged to the U.S. Dollar, Euro, the offshore Chinese Yuan, and Mexican Peso. The tokens are not legal tender, and are not approved by monetary authorities in the respective countries.
The crypto company has faced legal hurdles in the past. In 2021, the United States Commodity Futures Trading Commission (CFTC) ordered the company to pay a penalty of $41 million “for making untrue or misleading statements” regarding the USDT stablecoin.
The recent collapse of the TerraUSD [UST] stablecoin, which was pegged to the US Dollar, has spread fear in the market. It further raised doubts about the security of stablecoins, and their backing.
Tether’s market cap on Wednesday was $66 billion, making it the third biggest cryptocurrency after Bitcoin and Ether.
