USDT stablecoin issuer Tether announced Wednesday its plan to launch a new stable digital currency pegged 1:1 to the British Pound Sterling. The firm disclosed that the new stablecoin, dubbed GBP₮, would be released early next month.
Tether Unveils GBP-Dominated Stablecoin
According to the official announcement, GBP₮ will be developed by the team behind the creation of USD₮, the largest stablecoin in the world, with a market capitalization of more than $68 billion.
At launch, the new token will be deployed on the Ethereum network, among other undisclosed blockchains, to facilitate easy, cheap, and faster asset transfers.
Speaking about the development, Paolo Ardoino, the chief technology officer at Tether, said that the stablecoin issuer is ready to comply with U.K. financial watchdogs to achieve its goals.
“We believe that the United Kingdom is the next frontier for blockchain innovation and the wider implementation of cryptocurrency for financial markets. 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,” said Ardoino.
Tether further noted that the GBP₮ would be introduced to the market alongside its other fiat-pegged products already available. These products include the U.S. dollar-pegged USD₮, the euro-pegged EUR₮, and the recently launched MXN₮ pegged to the value of the Mexican peso.
Stablecoin Growth Rate
Stablecoins were first introduced in 2014 to combat the volatility of cryptocurrencies, with their values tied to reserve assets like gold and fiat currencies.
These assets are designed differently but maintain the same purpose and have greatly bolstered the adoption of the crypto industry as users can easily convert their digital currencies to stables to preserve their value. The stablecoin market currently accounts for more than 15% of the total global crypto market cap.
Meanwhile, Japan plans to legalize stablecoins as digital money next year. However, the upcoming legislation will only apply to stablecoins issued by licensed banks, money transfer agents, and trust companies.