Tether, the company behind the most popular stablecoin linked to the US dollar, USDT, has launched for the first time a new stablecoin pegged to the Mexican peso marking the company’s entry into the Latin American crypto market. The company that operates the blockchain-powered platform has announced that a new stablecoin will be added to its expanding Tether product range, which now includes four fiat-backed assets. The new token will trade under the MXNT token with initial support including Ethereum, Tron, and Polygon with support for additional networks expected to be launched at a future date.
The announcement follows the company’s previous stablecoins such as USDT, EURT and CNHT, which are pegged to the US dollar, the euro and the Chinese yuan, respectively. MXNT is created by the same team of developers that created Tether USDT and is powered by tether.to.
Tether has stablecoins pegged to the euro and yuan, but its stablecoin, pegged to the US dollar, USDT, is more popular. The current total amount of USDT is greater than $77 billion (about Rs 5,97,370 crore). However, the supply of tether has fallen by more than 15 billion during the collapse of LUNA over the past month.
“We have seen a rise in cryptocurrency use in Latin America over the past year which makes it clear that we need to expand our offering,” said Paolo Arduino, chief technology officer of Tether.
“Introducing a stablecoin pegged to the peso will provide a store of value for those in emerging markets especially Mexico. MXNT can reduce volatility for those looking to convert their assets and investments from fiat to crypto. Tether customers in this entirely new market will be able to benefit from the same Transparent customer experience.
The entry to Mexico was met with enthusiasm and support from cryptocurrency investors. The news is providing some relief in the market which is currently bearing a negative outlook on the stablecoins. When LUNA and UST freaked out, Tether broke below $1 (around Rs 77.5).