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Tether sees a big opportunity in the Mexico market and said that its Peso-backed stablecoin will facilitate faster and low-cost transfers.
Tether, the issuer of the world’s largest stablecoin USDT, is now entering the Latin American market. On Thursday, May 26, Tether issued a new stablecoin pegged to the Mexican Peso. This stablecoin will work on blockchain networks such as Ethereum (ETH), Polygon (MATIC), and Tron (TRX).
The Peso-backed stablecoin from Tether will come with a ticker symbol of MXNT. Thus, it will join the list of other fiat-pegged stablecoins such as dollar-pegged USDT, euro-pegged EURT and Chinese yuan-pegged CNHT.
Tether said that their study finds a growing demand for blockchain and crypto in the Mexican market. It also added that they have a unique opportunity for stablecoin adoption considering there are multibillion-dollar flow of remittances into Mexico and some underlying challenges involved with money transfer. Besides, Tether also believes that Mexico has the potential to become the crypto hub of Latin America.
Tether said that the creation of MXNT stablecoin will bring the Mexican Peso to blockchain thereby facilitating a faster and less costly option for asset transfer. Speaking of the development, Paolo Ardoino, CTO of Tether said:
“We have seen a rise in cryptocurrency usage in Latin America over the last year that has made it apparent that we need to expand our offerings. Introducing a Peso-pegged stablecoin will provide a store of value for those in the emerging markets and in particular Mexico. MXN₮ can minimize volatility for those looking to convert their assets and investments from fiat to digital currencies. Tether customers in this entirely new market will be able to benefit from the same transparent customer experience.”
Tether and Recent Challenges
Earlier this month, the collapse of the Terra ecosystem and its UST stablecoin sent shockwaves across the entire crypto space. Since then regulators have been observing how other stablecoins have been working.
Doubts emerged over Tether’s sufficient backing of USD for its USDT stablecoin. Many crypto market investors started liquidating with the USDT market cap falling by $10 billion in less than a month. However, Tether has managed to address most of the concerns by explaining its USD reserves.
In recent times, Tether has managed to handle over $300 million of USDT redemptions in a single day.