Crypto giant Tether targets UK investors

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 launch is likely to draw the attention of British regulators after Tether was last year fined by New York’s Attor- ney General for “deceiving” investors. Tether did not admit wrongdoing.

GBP, Tether’s fourth pegged cryptocurrency, promises to be backed oneto-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 $68bn (£55bn) in circulation. The launch of a sterling stablecoin should make it easier for investors to access cryptocurrencies as it will allow trading platforms to more easily accept GBP deposits.

The Bank of England and the Financial Conduct Authority declined to comment. A Treasury spokesman said: “We are firmly committed to putting the UK’S financial services sector at the forefront of cryptoasset technology.”