• Tether has launched a new stablecoin called "MXN₮"
  • MXN₮ will be pegged on a 1:1 ratio to the Mexican peso
  • This is the fourth stablecoin launched by Tether

Tether, the firm behind USDT, the world's biggest stablecoin by market capitalization, has announced the launch of a new stablecoin pegged on a 1:1 ratio to the Mexican peso.

According to the a statement from Tether, the new stablecoin, a cryptocurrency whose value is pegged to fiat and remains constant, will be called "MXN₮" and will be initially launched on three major blockchains including Ethereum, Tron and Polygon.

Currently, Tether has three major stablecoin offerings: the U.S. dollar-pegged USD₮, which has a market capitalization of $73.469 billion (data at 11:11 a.m. ET from CoinGecko); the euro-pegged EUR₮, which has a market capitalization of $222 million; and the offshore yuan-pegged CNH₮. The MXN₮ is the fourth stablecoin from the firm.

"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," said Paolo Ardoino, CTO of Tether.

Tether now aims to expand into Latin America and the MXN₮ stablecoin will provide a testing ground for onboarding new users in the Latin American market.

Interestingly, according to data by crypto payments firm Triple A, 2.5% of Mexicans own cryptocurrency while 40% of Mexican companies are looking to adopt blockchain and cryptocurrencies in some form. Tether's Mexican peso-pegged stablecoin might be a cost-effective solution for businesses.