Tether Operations Limited is launching a new fiat-pegged digital currency. This time it will be pegged to the British Pound Sterling, the stablecoin developer announced on Wednesday.
The new stablecoin, GBP₮, is prepared to be launched in early July, but the company did not provide any specific date. Initially, the stablecoin will be available only on the Ethereum blockchain.
In addition, it has specified that the new stablecoin will be pegged at 1:1 to the British Pound Sterling.
Tether is known for its USD-pegged stablecoin, USDT. Though the crypto company remains highly controversial for being opaque about its USD chest that is backing the USDT. However, it continued to expand its offerings, bringing more stablecoins pegged to the euro, Chinese yuan and Mexican peso.
Britain: the New Crypto Hub?
Also, the company highlighted that its move to bring a GBP-pegged stablecoin was pushed by the UK Treasury’s plan of making the country a cryptocurrency hub. The UK government is even considering recognizing stablecoins as a legal form of payment.
“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,” Tether’s Chief Technical Officer, Paolo Ardoino, said.
“Tether is ready and willing to work with UK regulators to make this goal a reality and looks forward to the continued adoption of Tether stablecoins.”
Last year, Tether and its sister firm, Bitfinex, settled with the New York Attorney General in the US, paying $18.5 million, for a loan fiasco. Moreover, the two crypto companies were fined $42.5 million by the CFTC for making ‘untrue or misleading’ claims about USDT stablecoin.
Despite the controversies around Tether, USDT remains the largest circulated USD-pegged token with almost $67 billion in market capitalization.
This article was written by Arnab Shome at www.financemagnates.com.