Tether launches Mexican peso-pegged stablecoin MXNT

Tether, the issuer of the USDT stablecoin, has launched a new stablecoin, MXNT, pegged to the Mexican peso. It can be moved on the Ethereum, Tron and Polygon blockchains.

Tether refers on the study Triple A company dealing with payments in crypto-currencies. According to the study, 40% of Mexican organizations are ready to implement blockchain and cryptocurrencies in business processes. Therefore, Tether management believes that Mexico will be a good springboard for the use of stablecoins, given the difficulties associated with remittances in the country.

MXNT will be pegged to the Mexican Peso at a 1:1 ratio. This stablecoin was created by a development team that once worked on USDT. With the help of MXNT, users will be able to transfer assets valued in US dollars to pesos at the lowest cost, Tether assures.

“Over the past year, there has been an increase in the popularity of cryptocurrencies in Latin America, and we have decided to expand our offerings in Latin American countries. MXNT can reduce volatility risks for those who want to transparently convert their fiat assets into digital currencies,” said Tether CTO Paolo Ardoino.

In 2016, Tether introduced the EURT stablecoin, pegged to the euro and running on the Bitcoin blockchain. In 2019, Tether on the Ethereum blockchain launched the CNHT stablecoin backed by the Chinese yuan. As for USDT, as of May 26, 2022, its total market capitalization is around $73.2 billion.

Ardoino recently said that central bank digital currencies will not be able to displace stablecoins, since they are based on an idea created by Tether eight years ago. However, digital currencies of central banks can become a full-fledged replacement for outdated payment services such as SWIFT, Ardoino concluded.