A controversial British Virgin Islands-based company behind one of the biggest cryptocurrencies in the world is targeting British investors with a new token pegged to the pound.
Tether Operations Limited, which runs so-called "stablecoins", will launch a sterling product in July, making it easier for British investors to access many crypto trading platforms.
The Telegraph says the launch is likely to get the attention of British regulators after Tether was last year fined by New York's Attorney General.
GBP₮, Tether's fourth pegged cryptocurrency, promises to be backed one-to-one by the British pound.
Stablecoins are often used by cryptocurrency businesses, many of which struggle to access regular bank accounts and must turn to quasi-currencies instead. Tether effectively acts as a middleman, taking sterling or dollar deposits and issuing crypto equivalents.
The company's main stablecoin, which is pegged to the dollar, has become crucial to the functioning of the global cryptocurrency market, with over £55billion in circulation.
The launch of a sterling stablecoin should make it easier for British investors to access cryptocurrencies as it will allow trading platforms to more easily accept GBP deposits.
Tether's expansion to the UK is likely to draw scrutiny from regulators.
New York Attorney-General Letitia James fined Tether and related entities £15million last year after finding it had not always had enough dollars to back its stablecoin one-for-one.
She said at the time: "Tether's claims that its virtual currency was fully backed by US dollars at all times was a lie.
"These companies obscured the true risk investors faced and were operated by unlicensed and unregulated individuals and entities dealing in the darkest corners of the financial system."
Tether did not admit wrongdoing and said it would improve disclosures about its reserves.
A Treasury spokesman told the Telegraph: "We are firmly committed to putting the UK's financial services sector at the forefront of cryptoasset technology and innovation. This includes creating the conditions for stablecoins - when used as a means of payment - to operate and grow safely, while mitigating potential financial-stability risks."
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