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On Wednesday, Tether announced that it was launching a new stablecoin pegged to the British pound sterling, joining four other stablecoins the company has pegged to the U.S. dollar, Euro, Chinese yuan, and Mexican peso. 

The new stablecoin is expected to launch in July.

Tether also operates Tether USDT, the world's largest stablecoin valued at more than $68 billion.

The move comes on the heels of the U.K. Treasury's decision to transform the country into "a global crypto hub," which includes legalizing stablecoins and recognizing their use as a valid payment method. Indeed, the U.K.'s Economic and Finance Ministry is already working on expanding its regulatory framework to include stablecoins.

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 "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," Tether said.

“We believe that the United Kingdom is the next frontier for blockchain innovation and the wider implementation of cryptocurrency for financial markets. We hope to help lead this innovation by providing cryptocurrency users worldwide with access to a GBP-denominated stablecoin issued by the largest stablecoin issuer,” said Tether CTO Paolo Ardoino. 

The new stablecoin, which will be pegged 1:1 with the British pound sterling, will have the same team of developers as Tether USDT.

The announcement comes as algorithmic stablecoins like Terra USD have collapsed and triggered renewed scrutiny over stablecoins' viability and role in crypto markets. 

Tether's UDST also recently saw its market capitalization fall below $70 billion — a dramatic drop that has not happened since October 2021.