Tether Introduces New USDT Counterpart Pegged to Mexican Peso

  • The peso, which is now trading at $0.051, will serve as the base currency for MXNT.
  • According to data by Triple-A, most crypto in Mexico is utilized for speculation and trade.

A Mexican stablecoin will be introduced in addition to its counterpart USDT, the biggest stablecoin by market capitalization at $73.2 billion, which has just recovered from the Terra (UST) collapse disaster, momentarily approaching the $0.95 level. The firm behind USDT is launching MXNT, a new stablecoin in Mexico, where 2.5 percent of the population owns crypto, and 40 percent of businesses have shown interest in blockchain and cryptocurrencies. In the start, MXNT will be available on Ethereum, Tron, and Polygon.

Remittances From the United States

The peso, which is now trading at $0.051, will serve as the base currency for MXNT. Tether’s chief technological officer, Paolo Ardoino, said that introducing a Peso-pegged stablecoin would serve as a store of wealth for individuals in developing nations, particularly Mexico. According to data by Triple-A, most crypto in Mexico is utilized for speculation and trade. Mexicans, however, are interested in crypto and blockchain technology because of remittances coming from the United States and the obstacles in the money transfer process.

Following Tether’s shift of corporate paper reserves to the higher-quality asset of short-term government debt, the recent Terra stablecoin crash spurred $10 billion in USDT withdrawals, all of which were fulfilled. According to MHA Cayman, a subsidiary of MHA MacIntyre, a UK accounting company, Tether had 31 percent of its assets in commercial paper reserves last July, which dropped to a little more than a quarter in March this year.

Before this, Tether was fined $41 million by the Commodities and Futures Trading Commission (CFTC) for fraudulently claiming to back up its stablecoin with 100% dollar reserves and agreed to publish quarterly updates on its reserve composition as part of a settlement.

Content writer by profession. A crypto lover and has passion for writing. Follows the developments of digital currency right from its launch, years ago.