The creator of the largest stablecoin USDT, Tether, dives into the Latin American market with the launch of Mexican Peso-Pegged MXN₮ stablecoin.
According to the announcement, MXN₮ tokens will be first available on the three major blockchains Ethereum, Tron, and Polygon.
MXN₮ is the company’s fourth stablecoin, following the U.S. dollar-pegged USDT, the Euro-pegged EURT, and the Chinese Yuan-pegged CNHT.
Tether stated that Mexico is “a prime location for the next Latin American crypto hub,” citing a Triple A report that stated that 40% of Mexican companies are interested in embracing blockchain and crypto in some manner.
The multibillion-dollar flow of remittances into Mexico, as well as the issues associated with money transfers, have provided a ‘unique opportunity’ for stablecoin usage and adoption, according to Tether.
“The creation of MXN₮ puts Mexican Peso on the blockchains and provides a faster, less costly option for asset transfers,” the announcement reads.
Paolo Ardoino, CTO of Tether, noted “MXN₮ can minimize volatility for those looking to convert their assets and investments from fiat to digital currencies. Tether customers in this entirely new market will be able to benefit from the same transparent customer experience.”
Tether anticipates that the launch of MXN₮ will serve as a test bed for enrolling new users in Latin America, and pave the path for the release of other fiat-pegged currencies in the region.
USDT briefly lost its peg to the US dollar earlier this month due to market volatility induced by the collapse of Terra’s UST algorithmic stablecoin. Following the situation, Tether released its Q1 2022 assurance report last week, claiming that the reserves of Tether are fully backed.