What to know about the launch of GBPT, Tether’s stablecoin?

The company Tether has announced that it will launch a stablecoin or stable currency converted to British Pounds (GBPT) in July 2022.

This new coin will join the currencies:

….all converted to US Dollar, Euro, Offshore Chinese Yuan and Mexican Peso. While concerns over stablecoins after the Terra USD collapse are high, Tether continues to push forward and has opted to set its sights on the UK this time around.

A stablecoinWhat is that ?

The stablecoins are price-stable digital assets. These coins are pegged to reserved assets like the US dollar, another digital asset, or exchange-traded commodities like gold.

Unlike digital assets such as Bitcoin and Ethereum, which are volatile and whose price changes very regularly, stablecoins remain stable. Therefore, many businesses and corporations can trade using the stablecoins to ensure the absence of price volatility.

Stable currencies are backed by a particular asset to which they are pegged. Thus, when a company that issues a stablecoin creates a reserve to hold the asset, the stablecoin can hold US$200 million in the reserve and issue 200 million coins with a fixed value of 1 US dollar for 1 coin. Fiat currency can be withdrawn from the reserve when the owner of the stablecoin cashes it in.

A new stablecoin pegged to the pound sterling

Tether’s stablecoin GBPT will be pegged to the British pound in a 1:1 ratio and will start as an ERC20 token on the blockchain Ethereum. So far, the market for stablecoins was heavily weighted to the US dollar.

Tether’s decision to launch a sterling-denominated stablecoin suggests that the UK’s appetite for cryptocurrencies is growing.

Tether CTO Paolo Ardoino says the UK is the next frontier for innovation blockchain. Indeed, the British Treasury has announced its intention to make the United Kingdom a global center of cryptocurrencies, a big news for the country. This will involve bringing in the stablecoins within its regulatory framework and could possibly include the authorization of stablecoins as a means of payment.

GBPT joins a family of four other fiat-denominated Tether (USDT) tokens, including the largest stablecoin by market capitalization, USDT. Other stablecoins include EURT pegged to the Euro, CNHT pegged to the offshore Chinese Yuan, as well as MXNT, the recently launched Mexican Peso pegged stablecoin.

The future of stablecoins

The road has been difficult for the stablecoins over the past few months and many remain concerned about their place in the cryptocurrency market. The collapse of the blockchain Terra sent shockwaves through the industry and triggered the current market decline. The Luna 2.0 course, token of Terra, proves it: the currency has been in constant decline for some time. As a result, Tether’s own market capitalization has shrunk to below $70bn (£57.35bn) for the first time since 2021, as seen on KuCoin.

Some fear that stablecoins are not as stable as some suggest. However, the case of Terra USD is slightly different from that of Tether. Tether, and the soon-to-be-launched GBPT token, are asset-backed. This means that they are 100% backed by cash or cash equivalents such as bank deposits, treasury bills and the like. Terra USD was not backed in this way.

However, it will probably take some time for confidence in stablecoins to return and for investors to feel ready to put their savings in these currencies. Calls have been made for greater transparency on the quality and liquidity of the investments used to back them.


If you are a cryptocurrency investor and are considering investing in stablecoins, it is important to understand that they always carry a high level of risk. It is also worth learning about how they are collateralized and what would happen if they were to detach from their fiat currency. Be that as it may, the United Kingdom thus presents itself as a pioneer among European countries in the world of crypto investments and will perhaps inspire other nations on the continent.

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What to know about the launch of GBPT, Tether’s stablecoin?

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