Tether enters Latin America with stablecoin pegged to Mexican peso

Representative image.

Tether, the company operating the blockchain-enabled platform tether.to, on May 27 announced the launch of MXNT, a stablecoin pegged to the Mexican peso.

MXNT tokens will initially support Ethereum, Tron, and Polygon.

MXNT will join three other fiat currency-pegged tokens Tether has in the market: the US dollar-pegged USDT, the euro-pegged EURT and the offshore Chinese yuan-pegged CNHT.

According to data from Triple-A, a cryptocurrency payments company, 40 percent of Mexican companies are looking to adopt blockchain and cryptocurrencies in some form, making Mexico a prime location as the next Latin American crypto hub.

Difficulty in money transfers spurred launch

The multibillion-dollar flow of remittances into Mexico—the country is among the top nations when it comes to money being sent in from its citizens abroad—and the difficulties involved with money transfers have created an opportunity for stablecoin usage and adoption.

MXNT puts the Mexican peso on the blockchain and provides a faster, cheaper option for asset transfers, according to a statement from the company.

“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,” Paolo Ardoino, CTO of Tether, said.

“Introducing a peso-pegged stablecoin will provide a store of value for those in the emerging markets and in particular Mexico. MXNT can minimise 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,” Ardoino added.

According to the company, the launch of MXNT will provide a testing ground for onboarding new users in the Latin American market and pave the way for more fiat currency-pegged stablecoins in the region.