Tether launches Peso-backed stablecoin (MXNT) for Latin America
Tether, the company behind USDT (US Tether), has today launched a new stablecoin called MXNT backed by the Mexican Peso
Paolo Ardoino, Tether’s CTO, outlined the reasons for the expansion via a press release. “We have seen a rise in cryptocurrency usage in Latin America over the last year that has made it apparent that we need to expand our offerings. Introducing a Peso-pegged stablecoin will provide a store of value for those in the emerging markets and in particular Mexico”
MXNT will initially be available on the Ethereum, Tron and Polygon blockchains and joins Tether’s 3 other stablecoin offerings: USDT, EURT and CNHT, which are pegged to US dollars, euros and the Chinese yuan respectively
In a press release announcing the launch, Tether pointed to data by Triple A, which shows 40% of Mexican companies are looking for ways to enter the crypto space, “making Mexico a prime location for the next Latin American crypto hub.”
Combined with the billions of dollars sent annually as remittance to Mexico, MXNT could reduce the cost for expats sending money to families in Mexico.
“MXNT can minimise volatility for those looking to convert their assets and investments from fiat to digital currencies. Tether customers in this entirely new market will be able to benefit from the same transparent customer experience.” Ardoino added.
USDT currently holds the highest market cap amongst US stablecoin projects but has recently seen its supply fall by around $15 billion in light of Terra’s collapse and growing uncertainty around stalecoins earlier this month. Tether has also faced scrutiny for how it backs up its assets, with some experts claiming their 1:1 ratio of USDT to real dollars has not been clearly demonstrated in their financial reports.
To learn more about stablecoins, check out our guide.