Despite the huge uncertainty rocking the stablecoin market with the de-pegging of Terra’s UST, Tether has launched a new token pegged to three networks. The new stablecoin with the MXNT ticker is pegged to the Mexican peso on Ethereum, Tron, and Polygon networks.
The digital asset will join Tether’s roster of fiat-pegged stablecoins including the dollar-pegged USDT, euro-pegged EURT, and the Chinese yuan-pegged CNHT. The issuer of the new stablecoin believes there is a unique opportunity to provide a cheaper option for asset transfer within the region.
Paolo Ardoino, Tether’s chief technology officer, highlighted that the rise in crypto usage in Latin America drove their decision to expand. He shared that the introduction of a stablecoin pegged to the peso will give the people of Mexico a way to store value. Ardoino said MXNT can minimize volatility for those looking to convert their assets and investments from fiat to digital currencies. The team, behind the new stablecoin, explained this would add value to the emerging market by providing a testing ground for onboarding new crypto users in the region. This may also set a precedent for the launch of more stablecoins pegged to the peso.
USDT had shown signs of stress earlier this month as it traded below $0.99. But Ardoino assured that they are able to withstand the redemption of 300 million USDT tokens in a day with a sweatdrop. Tether had also highlighted the transfer of 1 billion USDT from Tron’s blockchain into Ethereum and Avalanche. This chain swap came amid market panic fueled by the collapse of Terra’s UST.