The announcement highlighted that this may spark the launch of more peso-backed stablecoins within the region.
Amid market issues surrounding stablecoins, Tether (USDT) launched a new digital asset that will be pegged to the Mexican peso on Ethereum (ETH), Tron (TRX) and Polygon (MATIC) networks.
In an announcement sent to Cointelegraph on Thursday, Tether mentioned that the token will have the MXNT ticker and will join Tether’s roster of fiat-pegged stablecoins that includes dollar-pegged USDT, euro-pegged EURT and Chinese yuan-pegged CNHT.
Citing data that reports blockchain and crypto demand among Mexican companies, the stablecoin issuer believes that there’s a unique opportunity to provide a cheaper option for asset transfer within the region.
According to Tether’s chief technology officer, Paolo Ardoino, the rise in crypto usage in Latin America pushed their decision to “expand.” He explained that the introduction of a stablecoin pegged to the peso will give those in Mexico a way to store value. Apart from this, Ardoino believes that:
“MXNT can minimize volatility for those looking to convert their assets and investments from fiat to digital currencies.”
The team also highlighted that the move will add value to the emerging market by providing a testing ground for onboarding new crypto users in the region. Additionally, they noted that this may also set a precedent for the launch of more peso-pegged stablecoins.
Related: Cryptopedia: Learn the concepts behind stablecoins and how they work
Earlier in May, USDT showed some signs of stress as it traded below $0.99 on some of the major crypto exchanges. However, the Tether chief technology officer assured the community that they are able to withstand the redemption of 300 million USDT tokens in a day “without a sweat drop.”
On the same day, the firm also announced the transfer of 1 billion USDT from Tron’s blockchain into Ethereum and Avalanche (AVAX). The chain swap was announced amid market panic because of the recent collapse of TerraUSD (UST).