British bank notes and coins with Queen Elizabeth’s portrait.
Karol Serewis/SOPA Images/LightRocket via Getty Images
- Crypto platform Tether said Wednesday it will launch a token pegged to Britain’s pound sterling.
- Trading of the 1:1 pegged stablecoin is expected to begin in July on the Ethereum blockchain.
- Tether has tokens tied to the US dollar, euro, offshore yuan and Mexican peso.
Tether plans to add another token tied to fiat currency to its roster, with the company on Wednesday introducing a stablecoin that will be tied to British pound sterling.
GBP₮ will come to market in early July, with a 1:1 peg to Britain’s currency, Tether said in a statement. The creation of GBP₮ will put pounds available to trade on the Ethereum blockchain.
Stablecoins derive their value from being pegged to another asset. They can be used for quick transactions in the crypto market or as a place to park funds during times of volatility.
Tether has stablecoins tied to the US dollar, the euro and the offshore Chinese yuan. The crypto platform introduced a token tied to the Mexican peso in May. But this year’s rout in the crypto market had shaken Tether’s USDT from its tie to the dollar, a peg that was later recovered.
The Bank of England has been studying the potential of launching a its own central bank digital currency, or CBDC. Meanwhile, the UK government last month proposed safeguards related to stablecoins after the multibillion dollar collapse of the Terra algorithmic stablecoin.
Tether said it’s upcoming pound-pegged token should provide a faster and less costly option for asset transfers.
“We believe that the United Kingdom is the next frontier for blockchain innovation and the wider implementation of cryptocurrency for financial markets,” Paolo Ardoino, Tether’s chief technology officer, said in the statement. “Tether is ready and willing to work with UK regulators to make this goal a reality and looks forward to the continued adoption of Tether stablecoins”.
