The new token will be pegged to the British pound at 1:1 and will be available in July.

According to a press release, Tether, the issuer of the largest US dollar-pegged stablecoin, plans to expand its offerings with the introduction of GBPT, a stablecoin pegged to the British pound.

The token, which will be issued in July, will be the company’s fifth stablecoin. It will join the US dollar-pegged USDT, Euro-pegged EURT, offshore Chinese yuan-pegged CNHT, and Mexican peso-pegged MXNT, all of which were introduced last month.

The May collapse of algorithmic stablecoin terraUSD (UST) raised questions about how stable stablecoins are. While UST was designed to maintain its dollar peg programmatically, in contrast to Tether’s stated approach of keeping near-cash investments that can be quickly liquidated should the need arise, there have been calls for greater transparency about the quality and reliability of the UST.

The UK government stated in April that it hoped to become a global hub for crypto technology and investments.

Tether CTO Paolo Ardoino stated in the statement, “We believe that the United Kingdom is the next frontier for blockchain innovation.” “Tether is ready and willing to collaborate with UK regulators to achieve this goal, and we look forward to the continued adoption of Tether stablecoins.”

In January, a House of Lords committee concluded that there is “no compelling case/” for a central bank digital currency (CBDC).