Yesterday, Tether announced plans to expand its lineup of tokens tied to fiat money by launching a stablecoin that will be backed by the British Pound Sterling. 

Stablecoins obtain their value from being pegged to another asset. They can be used for swift transactions on the cryptocurrency market or as a safe haven for money during turbulence.

According to a statement from Tether, GBP will be offered on the market early in July with a 1:1 peg to the pound. This introduction of GBP will make pounds tradable on the Ethereum blockchain.

Tether’s Chief Technology Officer, Paolo Ardoino is quoted saying, 

“We believe that the United Kingdom is the next frontier for blockchain innovation and the wider implementation of cryptocurrency for financial markets. We hope to help lead this innovation by providing cryptocurrency users worldwide with access to a GBP-denominated stablecoin issued by the largest stablecoin issuer”.

Ardoino added that Tether is ready and willing to work with UK regulators to make this goal a reality and looks forward to the continued adoption of Tether stablecoins. 

The timing of the launch of the GBPT token is questionable as it comes when the crypto sector as a whole is experiencing severe contractions.

Recent times have seen the flagship cryptocurrency, Bitcoin fall from a high of $69,000 to around $20,000 this week.

Tether’s total valuation has dropped by nearly $20bn since its peak while its largest token, the USD tether, has fallen by more than $8bn in just over a week as holders race to cash out into safer assets. 

Tether claims that despite the market decline, its business has never been more robust and cites the quickness with which the billions were taken as proof of its solid roots.

The UK Government, which claims to still support the industry despite the crypto market fall, specifically mentioned stablecoins as an area requiring regulatory assistance.