The world’s largest stablecoin issuer, Tether, is expanding its currencies. The company has targeted Mexico as the next viable market for a Peso-pegged digital asset.
Tether announced that it was launching a new stablecoin for Mexican markets on May 26. The new token will go under the ticker MXNT and will be pegged to the Peso. Additionally, it will be issued on the Ethereum, Tron, and Layer 2 Polygon networks according to the announcement. At the time of writing, 1 USDT would be equivalent to 19.75 MXNT.
Furthermore, the new addition to the Tether lineup brings its total number of stablecoins to four. There is the dollar-pegged USDT, a EURT pegged to the euro, and an offshore Chinese yuan-pegged CNHT.
Tether Launches MXN₮
Tether Tokens Pegged To the Mexican Peso 🇲🇽Read the full press release ⬇️https://t.co/o732RTxc7T pic.twitter.com/fT1srEgeed
— Tether (@Tether_to) May 26, 2022
Emerging Mexican Markets for Tether
Tether has chosen the Latin American country because 40% of Mexican companies are looking to adopt blockchain and cryptocurrencies, according to research. It added that there is a multi-billion dollar flow of remittances creating an opportunity for a stablecoin. Banking difficulties, costs, and delays are also a problem for Mexicans.
Paolo Ardoino, CTO of Tether, said that the firm has seen a rise in cryptocurrency usage in Latin America over the last year. “Introducing a Peso-pegged stablecoin will provide a store of value for those in the emerging markets and in particular Mexico,” he added.
Additionally, MXNT can minimize volatility for people converting assets and investments from fiat to digital assets.
Tether's role is providing a fair, transparent and cheap way to transact among each other.$USDt is the widest used stablecoin in the world and it's a true lifeline for millions of people in emerging markets and developing countries. https://t.co/xunfpCwnL6
— Paolo Ardoino (@paoloardoino) May 26, 2022
The company stated that the launch of MXNT will provide a “testing ground” for onboarding new users in the Latin American market. It plans to launch more fiat-pegged currencies in the region in the future.
Furthermore, Tether revealed its reserves earlier this month, silencing the crypto critics.
Stablecoin Ecosystem Outlook
Tether is currently the market leader for dollar-pegged stablecoins. Furthermore, it has a market share of 45% with $73 billion in capitalization. However, the supply has decreased by 12% over the past month or so as investors have exited their crypto positions.
The total stablecoin market cap is currently $160 billion, which is about 13% of the total crypto market cap. Additionally, Circle’s USDC is the second-largest stablecoin with a circulation of 53 billion. It did not suffer a supply cut and has actually increased to new highs recently.
With the demise of TerraUSD, Binance USD is the third-largest stablecoin with a market cap of $18 billion.
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