A number of stablecoins have been nibbling away at Tether's market share of late — most noticeably USDC, which is issued by Circle.
Tether has announced it's launching a new stablecoin that's pegged to the British pound.
The stablecoin issuer says GBPT will make its debut in early July, and it'll initially be supported by the Ethereum blockchain.
Just like with its American cousin, one GBPT will equal £1.
This isn't the first time that Tether has branched out beyond dollars. Beside USDT, its flagship stablecoin, the company also offers digital assets that are pegged to the euro, Chinese yuan, and Mexican peso.
All of this comes after the United Kingdom announced that it plans to become a "global crypto hub" — and recognize stablecoins as a valid payment method. In a statement, Tether said:
"This initiative, paired with hundreds of millions of people using crypto around the world, makes the United Kingdom a prime location for the next wave of industry innovation."
According to Tether, GBPT will deliver faster, less expensive transactions when compared with what's available right now, and this could be especially advantageous for cross-border payments.
The Bank of England is currently examining whether to launch its own digital pound, but some critics have accused the central bank of moving too slowly.
Paolo Ardoino, Tether's CTO, described the U.K. as "the next frontier for blockchain innovation," adding:
"Tether is ready and willing to work with U.K. regulators to make this goal a reality and looks forward to the continued adoption of Tether stablecoins."
It's worth noting that the British pound is one of the most-used fiat currencies around the world, but it has weakened substantially against the U.S. dollar in recent years.
Tether Facing Competition
A number of stablecoins have been nibbling away at Tether's market share of late — most noticeably USDC, which is issued by Circle.
Data from Messari recently suggested that USDC's daily trading volume comfortably exceeded USDT on Tuesday, June 21.
And figures from CoinMarketCap reveal that the market cap of USDT has dwindled substantially as the bear market takes hold.
The latest data shows it has fallen to $67 billion — a level not seen since September 2021 — as capital continues to flow out of the crypto space.
This is a 19% plunge from the record high for Tether's market cap, $83 billion, recorded last month.
Last week, Tether hit back at "false rumors" surrounding the funds that are held in reserve to back all the USDT in circulation.
Rumors have been swirling concerning its commercial paper portfolio, amid fears the stablecoin issuer could be at risk of financial trouble.
Warning that "simple users" risk taking the biggest hit as "coordinated funds" cash in on the uncertainty, Tether added:
"These rumors are completely false and likely spread to induce further panic in order to generate additional profits from an already stressed market."
There have long been concerns about whether Tether has enough U.S. dollars in reserve to cover all of the USDT in circulation.
While the company previously said that its stablecoins were 100% backed by real U.S. dollars, Tether's changed its tune in recent years.
