Tether, the controversial “stablecoin” that supports more than $ 60 billion in the crypto economy, is launching a British version to capitalize on the UK government’s desire to make the UK a global cryptocurrency hub.
Like its US dollar counterpart, of which $ 67 billion (£ 55 billion) is actively traded in the cryptocurrency markets, the digital asset will be built on the Ethereum blockchain, but its value will be fixed. and £ 1.
“We believe the UK is the next frontier for blockchain innovation and the wider implementation of cryptocurrency for financial markets. We look forward to helping lead this innovation by providing cryptocurrency users worldwide with access to a GBP-denominated stable currency issued by the largest issuer of stable currency, “said Paolo Ardoino, Tether’s chief technology officer.
“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,” added Ardoino, who is also CTO of the exchange of stablecoins. Bitfinex cryptocurrencies, a dual role shared by the two companies. executives, chief operating officers, chief financial officers and general counsel.
The launch of the GBPT token comes at an unfavorable time for cryptocurrencies. The industry as a whole has shrunk from nearly $ 3 billion in trade to less than $ 1 billion, and the flagship cryptocurrency, bitcoin, has fallen from a high of $ 69,000 to less than $ 20,000. Tether’s biggest witness, the dollar tether, has fallen by more than $ 8 billion in just over a week, as its holders are sued to secure safer assets, and the total value circulating is has reduced nearly $ 20 billion since the peak.
Despite the downturn, Tether says his business has never been more stable and points to the speed with which the billions were withdrawn as proof of its firm foundations. In early June, the company issued a statement boasting: “$ 10 billion in exchanges accounted for more than 12% of outstanding USD tok tokens. No bank in the world could process the withdrawal of 12% of its outstanding liabilities in a week.”
The company claims that each Tether is backed one by one by reserved assets, which is how it maintains its stability. It’s a different statement than the one he made when he launched his business: that each Tether was backed by reserved U.S. dollars. An investigation by the New York Attorney General’s Office concluded that the claim was a “lie” and Tether was banned from operating in New York and fined $ 18 million.
Despite the cryptocurrency crack, the UK government says it continues to support the sector and highlighted stable currencies as an area in need of regulatory stimulus.
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A Treasury spokesman said: “We are firmly committed to putting the UK financial services industry at the forefront of cryptocurrency technology and innovation. This includes creating the conditions for stable currencies, when used as a means of “The future of the Financial Markets and Services Bill will set the stage for regulating stable currencies in the United Kingdom.”
The Financial Conduct Authority and the Bank of England declined to comment.