Tether, the company behind the famous USDT stablecoin , seeks to make a strong foothold in the United Kingdom with a new product that promises parity with that country’s official fiat currency.
The stablecoin issuer announced in a statement on Wednesday that it is preparing to launch GBPT, a digital stablecoin linked to the British pound. The new stablecoin will initially be based on the Ethereum blockchain and is expected to go live in early July. There was no word on what other blockchains might add support in the future.
Developed by the Tether team , GBPT will be a stable digital asset with a price linked 1:1 to the British Pound (GBP), which will seek to provide a faster and cheaper option for the transaction of said currency.
A product for the UK Tether did not indicate whether the stablecoin will be backed by sterling-denominated reserves, or how it will guarantee asset parity.
Tether ‘s move comes after the UK government announced in April this year plans to turn Britain into a ” global cryptocurrency technology hub, ” as the firm notes in the statement. The government’s plans also included a move to recognize stablecoins as a valid form of payment.
Tether highlighted that these government efforts make the UK “a prime location for the next wave of industry innovation.” The CTO and main spokesperson for the company, Paolo Ardoino, also commented along these lines:
“We look forward to helping lead this innovation by giving crypto users around the world access to a GBP-denominated stablecoin issued by the largest stablecoin issuer.”
Ardoino added that Tether is “ ready and willing ” to work with UK regulators to see this through. No details were given in the statement if the new stablecoin has prior authorization from the country’s regulators.
Tether, stablecoins and regulation GBPT will expand the stablecoin offering of Tether , which already has several fiat-pegged tokens on the market, including EUR₮ pegged to the euro, CNH₮ pegged to the overseas Chinese yuan, and its flagship product USDT, pegged to the US dollar. The company also recently launched a stablecoin pegged to the Mexican peso .
However, for Tether , the world’s largest stablecoin issuer, the latest launch comes at a time when stablecoins are under regulatory scrutiny . In May, the third largest decentralized stablecoin, TerraUSD ( UST), lost its expected peg to the dollar and crashed to zero wreaking wider havoc on the market.
While the event also prompted a momentary decoupling of USDT from Tether , with other stablecoins suffering similar volatility, the issuer has reiterated confidence and addressed fears, assuring the asset’s ability to be redeemed for USD $1 forever.
Meanwhile, regulators and legislators in several countries around the world are not so sure, and have expressed their intention to tighten regulations for this sector. In the UK, the Financial Conduct Authority (FCA) has announced its intention to review its rules with the aim of protecting consumers against the potential insolvency of stablecoin issuers .
Tether has also faced controversy in the past due to the status of its dollar reserves and its apparent lack of transparency on the matter, something the company has also repeatedly addressed.