Tether Launches Mexican Peso-Pegged Stablecoin
- Dubbed MXNT, the new stablecoin is aimed at Mexican companies, 40% of which were reportedly looking to “adopt blockchain and crypto”.
- The fourth fiat-pegged Tether stablecoin will initially be available on the Ethereum, Tron, and Polygon blockchains.
Mexican pesos bank notes. Shutterstock
Tether has decided to expand its presence in Latin America by launching a new digital asset that will be pegged to the Mexican peso, the company said in a press release published on 26 May.
According to the announcement, the new Tether token will have the MXNT ticker, and will initially be available on the Ethereum, Tron, and Polygon blockchains. MXNT is the fourth fiat-pegged stablecoin Tether has issued, the others being the Euro-pegged EURT, the yuan-pegged CNHT, and the most popular of all the USDT. The CTO of Tether, Paolo Ardoino, said in a statement:
“Introducing a Peso-pegged stablecoin will provide a store of value for those in the emerging markets and in particular Mexico. MXN₮ can minimize volatility for those looking to convert their assets and investments from fiat to digital currencies. Tether customers in this entirely new market will be able to benefit from the same transparent customer experience.”
Part of the decision to develop a peso-pegged stablecoin was the increased interest of Mexican companies in digital technologies. Tether cited a report, which showed that 40% of the companies in the country were “looking to adopt blockchain and cryptocurrencies in some form”. The company also noted that a peso-pegged stablecoin will provide a unique opportunity for cheaper asset transfer in the region.
The rise of crypto interest in Latin America makes it a great spot for a new stablecoin, according to Tether, as it could add value to the emerging market by providing a testing ground for onboarding new crypto users in the region.
- The exchange is also waiving any fee on the conversion of USDT to USDC in order to stimulate the swap and make it frictionless.
- The move came only three months after rival exchange Binance started to auto-convert USDC to its own BUSD stablecoin.
Shutterstock
- The stablecoin issuer was order to produce a number of financial documents, as well as records of crypto trades, transfers, and its accounts with crypto exchanges.
- The order was made as part of a case that was started in 2019 by a group of investors, who alleged the company had manipulated the crypto market in 2017.
- Tether said the rumor its commercial paper portfolio was 85% backed by Chinese commercial papers was “completely false and likely spread to induce further panic”.
- The company also noted that it has reduced its portfolio to $11 billion, down from $20 billion in March, and that the goal was to eventually reduce its commercial paper backing to zero.