Tether Launches New Mexican Pesos Pegged Stablecoin

Tether has made a very bold and promising move into Latin America with the launch of MXN₮, a stablecoin pegged to the Mexican Pesos. 

The company said the new coin is blockchain-backed and will maintain a 1:1 ratio with the Mexican Pesos. The stablecoin comes off as the next token to be launched by the company after the US Dollar, Euro, and offshore Chinese Yuan-based USDT respectively. The token will be supported on the Ethereum, Tron, and Polygon protocols for now.

“We have seen a rise in cryptocurrency usage in Latin America over the last year that has made it apparent that we need to expand our offerings,” said Paolo Ardoino, CTO of Tether. “Introducing a Peso-pegged stablecoin will provide a store of value for those in the emerging markets and in particular Mexico. 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.” 

Latin America has a promising financial landscape, one that is ripe for penetration by blockchain technology. With billions in remittances flowing into Mexico in particular, Tether said its new stablecoin product will help bring the country’s currency on-chain, and help in facilitating fast and efficient funds transfers across the board.

“The addition of MXN₮ is a milestone for the company as it marks Tether’s entrance into Latin America with a dedicated digital currency. The launch of MXN₮ will provide a testing ground for onboarding new users in the Latin American market and will pave the way for future fiat-pegged currencies in the region to be launched,” the company said.

Bearish Stablecoin Outlook

The stablecoin outlook at this time is not a very good one following the collapse of TerraUSD (UST), of the Terra blockchain protocol. 

UST lost its peg to the US Dollar and introduced a spiraling event that saw the crypto ecosystem plunge in a remarkable way. With the stablecoin’s collapse, regulators shone their beam on these unique tokens and the broader ecosystem can expect more tightening over time.

With Tether making its foray into Latin America through MXN₮, all eyes are fixed on how successful the firm’s new product will be.