Tether will introduce GBPT, a stablecoin backed by the pound sterling

22-Jun-2022 By: Somesh Gaur

Tether will introduce GBPT, a stablecoin backed by the pound sterling

Leading stablecoin provider Tether is extending its stablecoin offering with the addition of a new cryptocurrency tied to the British pound sterling (GBP).

The new GBP-pegged stablecoin, GBPT, will go live in early July and will initially support the Ethereum blockchain, according to a formal announcement made by Tether on June 22.

In order to offer a quicker and more affordable option for asset transactions, GBPT will be a reliable digital currency linked in a 1:1 ratio to the GBPT.

The biggest stablecoin by market capitalization, USDT, and the other four fiat currency-pegged Tether tokens are now joined by GBPT. Other stablecoins include the offshore Chinese yuan-pegged CNHT, the euro-pegged EURT, and the recently announced MXNT, which is pegged to the peso of Mexico.

The debut of Tether's GBPT corresponds with the primary stablecoin of the firm, USDT, falling below $70 billion in market value for the first time since October 2021. In May 2022, the stablecoin's value surpassed $80 billion.

The continued market downturn and unpredictability around stablecoins, brought on by the failure of algorithmic stablecoins like Terra USD, contributed to Tether's declining market value. Asset-backed stablecoins, like Tether tokens, are fully backed by cash or currency equivalents like bank deposits, Treasury bills, and other assets, in contrast to algorithmic stablecoins.

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