Mongolia and Tether explore stablecoin collaboration

The First Deputy Chairman of the Central Bank of Mongolia, Anar Enkhbold, recently met with representatives from Tether Limited, the company behind the USDT stablecoin. The meeting included Quini Le, Director of Development for the Asia-Pacific region, and Jed Nazif, Director of Tokenization Expansion. The discussions focused on financial regulation, licensing, and potential cooperation between Mongolia and Tether.

Tether, established in 2014, aims to bridge traditional currencies with digital assets, reducing the risks associated with cryptocurrency volatility. USDT, the company’s stablecoin, ranks third in market capitalization among crypto assets and dominates 61% of the stablecoin market. Its value is pegged 1:1 to the US dollar, backed by reserves in dollars, treasury bonds, and other liquid assets.

During the meeting, Tether emphasized the importance of creating accessible and secure financial infrastructure. They proposed exploring the tokenization of Mongolia’s assets, including gold and mining industry products. The parties agreed to collaborate on developing policies and regulatory frameworks for a potential national stablecoin in Mongolia.

USDT’s stability and liquidity make it one of the most actively traded digital assets, with a daily transaction volume of about $43 billion and 23 million transactions. Tether also offers Tether Gold (XAUT), a token backed by physical gold stored in Switzerland, as part of its mission to support financial inclusion through blockchain technology.