Tether, issuer of the largest stablecoin by market cap USDT, has announced the launch of a new stablecoin digital currency. It is a stablecoin pegged at 1:1 to the price of the Mexican peso, which was named MXNT. The announcement marks Tether’s entry into Latin America.
Stablecoin pegged to the Mexican peso
According to the announcement, initially, MXNT will be available on ETH, Tron and Polygon blockchains.
MXNT will join three other fiat-pegged tokens that Tether has on the market: USDT, pegged to the US dollar; the EURT, pegged to the Euro; and the CNHT, linked to the Chinese yuan.
In its release statement, Tether stated that recent studies have shown that 40% of companies in Mexico are looking to adopt blockchain and digital assets in some form. This makes the country a prime location for Latin America’s next crypto asset hub, Tether said.
In addition, the company highlighted the existence of a billion-dollar flow of remittances to Mexico and the difficulties in money transfers as strengths to expand the adoption of stablecoins in the country.
“The creation of MXNT puts the Mexican peso on blockchains and provides a faster and less expensive option for asset transfers,” Tether pointed out.
According to the company, the stablecoin was created by the team of developers behind USDT and operates under tether.to.
According to Tether CTO Paolo Ardoino, the company has noticed an increase in the use of digital currencies in Latin America in the last year. Thus, Tether realized that it would need to expand its offerings to this region.
For Ardoino, the arrival of a stable currency pegged to the peso will provide a store of value for emerging markets, especially the Mexican market:
“MXNT can minimize volatility for those looking to convert their assets and investments from fiat currencies to digital currencies. So Tether customers in this new market will be able to benefit from the same seamless customer experience.”
Tether Expansion to Latin America
Finally, Tether highlighted that the launch of the stablecoin is a milestone for the company. After all, it marks its entry into Latin America with a dedicated digital currency.
MXNT will provide, according to the company, a testing ground to integrate new users into the local market. At the same time, it will pave the way for other currencies pegged to fiat currency to be launched in the region.