Cryptocurrency firm Tether has announced that it will launch a new stablecoin pegged to the British pound next month, adding to their selection of crypto assets pegged to major global currencies.
The move comes as the UK government draws up plans to regulate the use of digital currencies in order to integrate them into the British economy.
Stablecoins, which are designed to maintain a steady value against traditional currencies or commodities, have received bad press recently following the collapse of terraUSD, a stablecoin pegged to the US dollar.
Used as the predominant medium for exchanging crypto assets and traditional currencies, stablecoins play an important role in the crypto marketplace. The terraUSD scandal though has highlighted the need for regulatory oversight.
Despite the reputational dent, British Virgin Islands-based Tether plans to push forward in expanding its range of stablecoins. The company’s dollar-pegged stablecoin is currently the third-largest globally by market capitalization.
“We believe that the United Kingdom is the next frontier for blockchain innovation and the wider implementation of cryptocurrency for financial markets,” said Tether Chief Technology Officer Paolo Ardoino, adding that the firm would work closely with UK regulators.
The UK government said in May it plans to adapt existing rules to deal with future major stablecoin collapses, although the exact nature of proposed regulatory changes was not made clear.