Crypto News

Tether’s new stablecoin, pegged to Mexican Peso

Tether has launched a new stablecoin pegged to the Mexican Peso on Ethereum, Tron and Polygon networks

A Stablecoin pegged to Mexican Peso

Tether Operations Limited has launched another asset-backed stablecoin with the symbol MXNT, known as Tether Tokens. MNXT will be pegged 1:1 to Mexican Pesos. This new stablecoin is launched on three blockchains – Ethereum, Tron and Polygon

Tether Operations Limited is already successful with their Tether (USDT) stablecoin. As per Coinmarketcap, USDT is the third in ranking with a market cap of more than US $72 billion. In addition to USDT and MXNT two other stablecoins are available from Tether, EURT and CHNT. EURT is a Euro pegged stablecoin while CHNT is pegged to offshore Chinese Yuan.

Paolo Ardonio, CTO of Tether said in the press release, “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”. This peso pegged stablecoin will minimize volatility by helping Latin Americans convert their investments from fiat to digital assets.  

Mexico is going to be the next Latin American hub for crypto & blockchain adoptions. According to a cryptocurrency payments firm, Triple A, 40% of Mexican companies are looking to adopt blockchain and crypto in some form. A huge percentage of this segment is focused on crypto asset usage alone.

This data alongwith difficult money transfer of remittances into Mexico has prompted Tether to launch the stablecoin pegged to pesos only. MNXT will help Mexicans and Latin Americans with a better, safer and cheaper money transfer option. A peso pegged stablecoin would provide a store of value and better means to convert fiat into assets too.

According to the company, “the launch of MNXT will provide a testing ground for onboarding new users in the Latin American markets and will pave way for the future fiat-pegged currencies in the region to be launched.”

The launch came at a time when another stablecoin, UST collapsed after de-pegging from US Dollar. Tether’s USDT also face some ripples and the value dropped to $0.95. However, the release of a strong reserves report from Tether, managed to calm the fears. Currently, USDT is trading at $0.99.