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As part of its drive into new stablecoins, Tether is introducing a cryptocurrency token whose value is pegged to the value of the British pound. Beginning in early July, GBPT will be available, according to Tether.
According to a statement released on Wednesday, the GBPT token will be tradable on the Ethereum blockchain starting in early July. The cryptocurrency marketplace also provides tokens pegged to the US dollar, euro, Chinese yuan, and Mexican peso, the latter of which was introduced just last month.
One of the most popular crypto tokens is called a stablecoin, and traders and investors utilize it as a kind of wealth storage to protect their portfolios from market volatility. Since price volatility forced traders to sell their tokens, there are now much fewer dollar-pegged Tethers, or USDT, in circulation.
Compared to competitors like Circle’s USDC, Tether has been more severely affected by the crypto bear market, and last month, its dollar currency briefly lost its peg. Data from CoinGecko shows that total USDT circulation has decreased to $67 billion from a peak of over $83 billion in early May.
The launch of the new pound token coincides with the development of CBDCs, a state-issued stablecoin, by central banks in Europe and the UK. The Bank of England is still debating whether to introduce a digital version of the pound with market players. If approved, the token wouldn’t be delivered until the second half of this decade, according to the BOE.
According to Paolo Ardoino, chief technology officer at Tether, the UK’s desire to establish itself as a center for cryptocurrency makes it a desirable location. 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,”
Although it’s not the same as adopting stablecoins as legal tender, the UK has revealed plans to regulate them under current e-money regulations.
