Major stablecoin company Tether is expanding its stablecoin offering with a new cryptocurrency pegged to the British Pound Sterling (GBP).

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Bind officially announced On June 22, it is reported that its upcoming sterling-pegged stablecoin, GBPT, will launch in early July and will natively support the Ethereum blockchain.

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GBPT will be a stable digital currency pegged 1:1 to GBPT to provide a faster and cheaper asset transfer option.

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GBPT joins a family of four other fiat-pegged Tether tokens, including the largest stablecoin by market cap, USDT. Other stablecoins include the euro-pegged EURT, offshore Chinese yuan CNHT, as well as the recently launched MXNT, a Mexican peso-pegged stablecoin.

According to the announcement, the GBPT will be created by the Tether USDT development team and run on its main website.

“We hope to help bring this innovation to life by giving cryptocurrency users around the world access to a sterling-denominated stablecoin issued by the largest stablecoin issuer. […] Tether is ready and willing to work with UK regulators to make this a reality and looks forward to further adoption of Tether stablecoins.”

Tether CTO Paolo Ardoino noted that the UK is an important location for the next wave of industry transformation, adding:

The announcement also mentions that the UK Treasury announced plans in April 2022 to make the country a global cryptocurrency hub and include stablecoins in its regulatory framework. The UK Department of Economics and Finance also planned to amend its regulatory framework to include stablecoins as a means of payment.

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The launch of Tether GBPT comes as the market capitalization of the company’s main stablecoin, USDT, has fallen below $70 billion for the first time since October 2021. Earlier in May 2022, the stablecoin reached a value of over $80 billion.

The decline in Tether’s market capitalization comes amid an ongoing market downturn and uncertainty around stablecoins driven by the failure of algorithmic stablecoins like Terra USD. Unlike algorithmic stablecoins, asset-backed stablecoins like Tether tokens are 100% backed by cash or cash equivalents like bank deposits, treasury bills and others.