Tether, the company behind the largest dollar-pegged stablecoin on the market, USDT, has launched a new stablecoin pegged to the Mexican Peso, in an expansion of its stablecoin offerings into Latin America.
The new token, which will trade under the ticker MXNT, follows on from the company’s previous stablecoins USDT, EURT, and CNHT, pegged to the U.S. dollar, Euro, and Chinese Yuan, respectively.
Initial blockchain support for MXNT includes Ethereum, Tron, and Polygon, with the possibility of launching on additional networks in the future.
While Tether capitalizes on the demand for crypto infrastructure in Latin America, it is also battling controversy surrounding its dollar-pegged USDT stablecoin.
Earlier in May, USDT briefly lost its peg amid market-wide volatility caused by the fall of UST, an algorithmic stablecoin native to the Terra network. Although USDT quickly regained its parity with the dollar following the incident, the brief depeg resurrected fears surrounding the stablecoin’s backing.
Tether has repeatedly come under fire for the lack of transparency surrounding the assets the company holds to back USDT.
However, recent attestation reports combined with the company’s commitment to reducing the amount of commercial paper backing the top stablecoin have helped reassure holders of USDT stability.
