- USDT issuer Tether plans on launching a stablecoin pegged to the Great British Pound on Ethereum early next month.
- Its most popular stablecoin has seen an upward supply on exchanges, signaling high buying power.
Tether, the issuer of USDT stablecoin, is planning on launching its fifth stablecoin, the GBPT by early next month. The digital currency will be pegged 1:1 to the Great British Pound, hence its name. In a Wednesday statement, Tether said it plans on initially launching the stablecoin on Ethereum.
Tether to launch GBPT stablecoin, controversies still at large
“We believe that the United Kingdom is the next frontier for blockchain innovation and the wider implementation of cryptocurrency for financial markets,” Tether’s CTO, Paolo Ardoino, noted. The company, which touts itself as the “largest stablecoin issuer,” also hopes to propagate innovation through the digital currency.
Importantly, Tether’s USDT was one of the early stablecoins in the crypto market. It has gained traction through the years, now leading as the top stablecoin and third cryptocurrency with a market cap of over $67 billion. Other stablecoins from Tether are the euro-pegged EURT, the Chinese yuan-pegged CNHT, and the recently launched Mexican peso-pegged MXNT.
Closely behind Tether’s USDT is rival stablecoin USDC, issued by payments firm Circle. Last week, the firm launched a Euro-pegged stablecoin (EUROC), in an effort to capture the European market.
But even with their successes, stablecoins have recently been under duress to prove they are actually “stable.” This comes after Terra’s algorithmic stablecoin deppegged from the dollar and plunged below $0. There have also been concerns about whether stablecoins can facilitate the massive redemptions of the current market downturn. Questions have also arisen on USDT’s resilience in weathering the Celsius storm, more so because Tether was an early investor in the project.
USDT supply on exchanges surges
Nonetheless, stablecoin continues to garner popularity and use among the masses. Recent data from on-chain metrics provider Santiment shows that USDT supply on exchanges has been on the rise. Meanwhile, Bitcoin (BTC), which continues to trade at around $20K, has seen its supply on exchanges fall to a 2018-low.
The two happenings mean that investors are increasingly purchasing cryptocurrencies from exchanges using USDT. Additionally, they are hodling their Bitcoin, that is, moving it from exchanges to wallets.
These events come at a time when the market is under pressure from the bears, while inflation rises and a global recession looms. The changes in USDT and BTC supply on exchanges may be a direct effect of the Fed’s quantitative tightening policy.
Santiment says that this is a “good signal,” since it most likely means future sell-off will be controlled. Those holding on to their crypto stash, or buying more, are hoping to evade inflation or profit from the next bull run. The trend may continue, especially since market experts are confident that crypto winter will be elongated this time.
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