Tether has announced the creation of a new Mexican peso-pegged stablecoin, marking the company’s first strike into Latin America.
Tether said today that the stablecoin, dubbed MXNT, will initially be available on the Ethereum, Tron, and Polygon blockchains.
This is Tether’s fourth fiat-pegged stablecoin, following the US dollar-pegged USDT, the Euro-pegged EURT, and the offshore Chinese Yuan-pegged CNHT.
Tether’s CTO, Paolo Ardoino, stated in a statement that “we have observed a spike in bitcoin usage in Latin America over the previous year that has made it clear that we need to extend our products.”
“Introducing a stablecoin tied to the Mexican peso will provide a store of wealth for individuals in emerging economies, especially in Mexico.”
According to statistics from crypto payments startup TripleA, 40% of Mexican businesses are interested in using blockchain technology in some form, and over 3.1 million Mexicans possess cryptocurrencies.
MXNT To Pave Way For Future Fiat-Pegged Stablecoins
According to Tether, MXNT will serve as a testing ground for onboarding new users in Latin America and will pave the way for future fiat-pegged stablecoins in the region..
Tether’s Euro and Yuan-pegged stablecoins are more popular, however its USD-pegged stablecoin USDT has lately witnessed huge redemptions due to the collapse of algorithmic stablecoin terraUSD (UST) earlier this month.
According to The Block’s Data Dashboard, USDT is still the world’s largest stablecoin, with a total supply of over 77 billion coins.
Tether’s supply, on the other hand, has dropped by more than 15 billion in the last month.
Tether, on the other hand, is upbeat. “We should stress the fact that Tether did not lose its peg and the simplicity with which Tether allows traders to make redemptions,” Ardoino recently told The Block.