Tether, the firm behind USDT, the market's largest stablecoin linked to the US dollar, has announced the launch of a new stablecoin fixed to the Mexican Peso.
Tether's stablecoin offerings are now available throughout Latin America.
On Thursday, the corporation behind the $73 billion USDT stablecoin announced the debut of its fourth fiat-tied asset, this time pegged to the Mexican Peso.
The new token, MXNT, will replace the company's former stablecoins USDT, EURT, and CNHT, which were pegged to the US dollar, Euro, and Chinese Yuan, respectively.
MXNT will initially support Ethereum, Tron, and Polygon blockchains, with the possibility of expanding to other networks in the future.
Tether CTO Paolo Ardoino explained the company's decision to start issuing a Peso-pegged coin by saying, "We have seen a spike in cryptocurrency usage in Latin America over the last year that has made it evident that we need to broaden our services."
"Introducing a stablecoin tethered to the peso will provide a store of value for those in emerging markets, particularly in Mexico," he said.
According to data from crypto payments startup TripleA, 40 percent of Mexican businesses are interested in using blockchain technology in some form, and over 3.1 million Mexicans possess cryptocurrencies.
Mexican senator Indira Kempis stated in April that the Central American country is planning legislation to make Bitcoin its official currency, underscoring the demand for digital assets.
Tether is capitalizing on Latin America's need for crypto infrastructure while simultaneously dealing with controversies over its dollar-pegged USDT stablecoin.
The fall of UST, an algorithmic stablecoin native to the Terra network, produced market-wide volatility earlier in May, and USDT briefly lost its peg.
Despite the fact that USDT swiftly achieved parity with the dollar following the occurrence, the momentary depreciation reignited concerns about the stablecoin's backing.
Tether has been chastised in the past for the lack of openness surrounding the assets it uses to underpin USDT.
Recent attestation reports, as well as the company's pledge to reduce the quantity of commercial paper backing the top stablecoin, have served to calm USDT holders.