Tether’s Fifth Stablecoin Release
The GBPT will be Tether’s fifth stablecoin. Other stablecoins issued by Tether include USDT, EURT, CNHT, and MXNT. USDT remains the largest stablecoin and ranks as the third-largest cryptocurrency by market capitalization, following Bitcoin and Ethereum. Launched in July 2014, it was initially named Realcoin. USDT has proven to be an essential cryptocurrency, enabling easier transfers between crypto markets and the traditional financial system. With its 1:1 peg to the USD, USDT doesn’t experience the volatility typical of other cryptocurrencies.
USDT has endured for nearly a decade without losing its peg for any significant period. However, during the massive market downturn this spring, some investors expressed concern when USDT temporarily traded at 0.96-0.97 USD. This raised doubts among the crypto community about Tether’s reserves, but the company has since rejected the rumors surrounding its holdings.
The UK Treasury aims to position the country as a global hub for cryptocurrencies and has stated its intention to recognize stablecoins as a valid payment method. This initiative is expected to boost the popularity of GBPT. However, CryptoChipy wonders whether GBPT and USDT will be approved in the UK, considering the country’s strict regulations enforced by the FDA. Stablecoin regulations in the UK need to be updated before we can confirm that Tether USD is a safe investment for both British and international users.
Comparing GBPT and EUROC
The EUROC is a stablecoin set to be launched by Circle, the same company behind USDC, at the end of June. Given the similar release timelines, it is worth comparing these two coins. Both will be pegged to their respective fiat currencies, but the EUROC is expected to provide greater transparency, aligning with the current practices of USDC. At present, Circle’s stablecoins – USDC and EUROC – are leading the way, while Tether’s market share is declining. It’s important to note, however, that Silvergate, the issuer of EUROC, is based in La Jolla, California, and is unrelated to the actual euro or the European Central Bank (ECB) located in Frankfurt, Germany.
Meanwhile, Tether has been a controversial company for years due to concerns that its audits are conducted by unreliable firms, according to some critics. As such, it remains unclear whether the GBPT will be fully backed by fiat currencies and real-world assets. Nevertheless, Tether has earned significant trust within the crypto community, with its coins functioning relatively well since their inception. The company has also stated its willingness to cooperate with UK regulators to ensure GBPT’s adoption on par with USDT.
Both the EUROC and GBPT will initially be issued on Ethereum, with plans to expand to other blockchains over time.
Uses of GBPT
For those who have been following CryptoChipy for some time, it’s clear that stablecoins are crucial to the overall functioning of the crypto market. With the GBP-pegged stablecoin, traders will be able to swiftly enter and exit positions, which is particularly important during periods of high market volatility. Additionally, these stablecoins can be easily converted into fiat currencies.
As mentioned earlier, the British pound is among the most widely used fiat currencies in international trade. The introduction of GBPT will speed up international payments and reduce associated fees. Cryptocurrency enthusiasts who prefer to make payments for goods and services in digital currencies will also find the stablecoin useful, as it helps protect them from market fluctuations.
Final Thoughts on GBPT
Tether has announced the release of a new stablecoin, the GBPT, which will be backed by the pound sterling. This will be the company’s fifth stablecoin, joining USDT, EURT, CNHT, and MXNT. The GBPT is expected to achieve widespread adoption similar to USDT, especially since Tether is eager to work with UK regulators. Recently, the UK Treasury emphasized its intention to establish the country as a global crypto hub, with stablecoins playing a central role in this vision.
