The stablecoin issuer, Tether Operations Limited has unveiled its first fiat-pegged token that is tied to the Mexican currency, Peso. The new tokens, referred to as MXNT tokens, will initially be hosted on Tron, Polygon, and Ethereum blockchain.
MXNT Stablecoin Pegged to Mexican Peso on a 1:1 Ratio
Tether, one of the known firms for issuing stablecoins, has announced a new fiat-pegged token to become part of the company’s growing list of stablecoins. The new token, MXNT’s value, is pegged to the Mexican Peso.
Tether’s other fiat-pegged tokens include USDT (pegged to the US dollar) and EURT (pegged to the euro). Also under its hood is CNHT, an offshore Chinese yuan-pegged token, and gold XAUT, which is pegged to one ounce of gold.
Tether believes that MXNT will be beneficial to the Mexican financial industry, especially the remittance niche. “The multibillion-dollar flow of remittances into Mexico and the difficulties involved with money transfers have created a unique opportunity for stablecoin usage and adoption,” read the announcement from Tether.
According to the company, the creation of MXNT puts the Mexican Peso at the heart of the blockchain and offers a faster and more affordable method of transferring assets.
Tether USDT is the largest stablecoin today, with a market valuation of about USD73.2 billion. Out of the USD86.43 billion that was traded on Thursday, 27th May 2022, Tether’s volume was about 52.55%. When it comes to trading pairs, Bitcoin/USDT is the leading pair, hitting 55% of the traded volume on the same day. Now, Tether indicates that MXNT will be a testing ground for bringing new products to Latam.
Paolo Ardoino, the CEO of Tether, said that they noted an uptrend in crypto usage in Latam, especially in 2021. This made it crucial for the company to expand to the region.
“Introducing a Peso-pegged stablecoin will provide a store of value for those in the emerging markets and, in particular, Mexico. MXNT can minimize volatility for those looking to convert their assets and investments from fiat to digital currencies,” explained Ardoino.
Recently, Tether released the company’s assurance report following the crash of the Terra blockchain. Circle, the USDC issuer, also released its assurance report and further promised to provide weekly attestation reports.
