This coming July, Tether Operations, the company behind the largest dollar-pegged stablecoin, will introduce a new token backed by the British Pound Sterling (GBP).
The move follows Tether’s recent launch of MXNT, a crypto asset linked to the Mexican peso.
GBP₮ tokens will be available for trading on the Ethereum blockchain in early July, according to a statement on Wednesday. Additionally, Tether Operations provide tokens backed by the dollar, euro, and yuan.
The stablecoin will be pegged 1:1 to the British Pound Sterling in an effort to make asset transactions faster and cheaper.
Last month, Tether’s dollar token briefly lost its peg. According to CoinGecko, USDT circulation has dropped from a peak of more than $83 billion in early May to $67 billion now.
Bank of England
In response to a growing trend towards stablecoins, central banks around the world are developing their own versions. The Bank of England has not launched a digital sterling as yet, but continues to discuss its possible launch with market participants. If approved, the BOE has said that the token will not arrive until the second half of this decade.