Tether Operations Limited, a stablecoin issuer, has announced the creation of a new fiat-pegged currency based on the Mexican peso's value. The newly created MXNT tokens will be housed on Ethereum, Polygon, and Tron at first, according to the company.
Tether, a stablecoin and blockchain startup, has announced the creation of a new fiat-pegged token to join its stablecoin family. MXNT, a stablecoin tied to the value of the Mexican peso, has been released by Tether.
The popular USDT, which is pegged to the value of the US dollar, and EURT, which is pegged to the value of the euro, are among Tether's other fiat token offerings. CNHT, an offshore Chinese yuan-pegged token, and tether gold XAUT, a token pegged to the value of one ounce of fine gold, are also available.
The debut of MXNT will be placed on Polygon, Ethereum, and Tron. Tether believes that a digital peso will benefit Mexico's remittance industry greatly. According to Tether's statement on Thursday, "the multibillion-dollar flow of remittances into Mexico, as well as the problems associated with money transfers, have provided a unique potential for stablecoin usage and adoption." The launch of MXNT, according to the business, "puts the Mexican Peso on the blockchains and gives a speedier, less expensive option for asset transfers."
Tether USDT is the most valuable stablecoin on the market today, with a market capitalization of $73.2 billion. The market capitalization of the token is 5.77 percent of the $1.27 trillion cryptocurrency market.
Tether's volume is roughly $45.42 billion, or 52.55 percent of today's worldwide trade volume, out of $86.43 billion in digital currency transaction volume on Thursday. USDT is the most popular bitcoin exchange pair, accounting for 55 percent of all BTC trade volumes today. MXNT will be a "testing ground for integrating new users in the Latin American market," according to Tether.
Tether's CTO, Paolo Ardoino, stated during the announcement that the company has noticed an increase in the adoption of digital currencies in Latin America. In a note to a media outlet, Ardoino said, "We have seen an increase in cryptocurrency usage in Latin America over the last year, which has made it clear that we need to broaden our services."
Tether's CTO went on to say that releasing a Peso-pegged stablecoin will offer a store of wealth for those in developing nations, particularly in Mexico. For those wishing to move their assets and investments from fiat to digital currencies, MXNT can help reduce volatility.
Following the recent Terra blockchain UST fallout, Tether recently released its USDT May 2022 assurance report. In May, Circle, the issuer of the USDC stablecoin, also released an assurance report and has recently announced plans to develop USDC attestation reports on a weekly basis.