Tether expands to Latin America with Peso-linked stablecoins

Tether expands to Latin America with Peso-linked stablecoins
Written by Arindam

Tether, the firm associated with the popular stablecoin USDT, has expanded the crypto market in Latin America with a new stablecoin. This stablecoin is tied to the Peso of Mexico. The new token will be traded under the MXNT ticker. It will initially get support from Ethereum, Tron and Polygon.

Tether also has stablecoins pegged to the Euro and Yuan but USDT pegged to the dollar is more popular. USDT has a circulation of over $77 billion. The supply of Tether was reduced by more than 15 billion during the recent LUNA collapse. Tether CTO Paolo Ardoino said, “We have seen an increase in the use of cryptocurrencies in Latin America. As a result, we have expanded our product range. Stablecoins linked to Peso will provide a good alternative to emerging markets and people in Mexico in particular.”

MXNT was created by the same team of developers that was behind USDT. Stablecoins are cryptocurrencies that attempt to link their market price to a reserve asset such as gold or common currencies. These are more commonly used for digital transactions that involve converting virtual assets into real assets.

USD Coin, Tether and Binance USD are some of the popular stablecoins, which are pegged to the US dollar. Stablecoin, a rapidly growing version of crypto, has emerged as a major medium of exchange. It is often used by traders to remit funds. It is easy to exchange major stablecoins for bitcoin or other cryptocurrencies. Gold coins, a new variant of stablecoins, have grown in popularity in recent months. Gold coins are guaranteed with gold and are pegged to the dollar to reduce volatility. A special framework has been introduced in the US to increase the transparency and security of stablecoins. This is being called the Trust Act. With this, stablecoins are being officially included in the banking and financial system in the US. It will be the first western country to do so. The Trust Act aims to regulate stablecoins so as to increase their use in day-to-day payments.

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