The ‘Poundtoken’, a GBP-denominated stablecoin, has been launched by Isle of Man-based fintech startup Blackfridge.
According to the Bank for International Settlement, the British pound (GBP) is the fourth most traded fiat currency in the world by daily turnover.
According to Blackfridge, the “poundtoken,” which trades under the ticker “GBPT,” will be available on Gate.io, Bittrex Global, and Uniswap. Each token issued by GBPT is said to be fully backed by the British pound, which means that an equivalent value is held in reserves.
Its reserve status is regulated by the Isle of Man Financial Services Authority, which regulates deposit and investment businesses in the self-governing British Crown Dependency. In a monthly audit, Big Four accounting firm KPMG will examine poundtoken’s reserves.
He added that stablecoins have become an “integral part of the crypto sector.”
The purpose of stablecoins was originally to provide cryptocurrency users with reliable access to trading platforms. In addition to payments, remittances, lending, and escrow services, their use cases have grown over time. Stablecoins play an important role in the decentralised finance market, or DeFi.
Bank for International Settlements
According to the Bank for International Settlements, the British pound is one of the world’s most widely traded currencies. As of 2019, the pound Sterling accounted for 12.8% of global over-the-counter foreign exchange turnover, placing it fourth among active currencies.
“It’s no secret that the last few weeks have been difficult for the cryptocurrency markets, particularly for unregulated or unbacked stablecoins such as UST. For stablecoin holders, GBPT offers a unique combination: the stability of the British pound, and the reassurance of strict British financial regulations, combined with the speed, transparency, and integrity of the blockchain.”Alan Sun, CEO of PoundToken
As well as a pound-backed stablecoin, a euro-pegged stable asset was recently launched by Circle. Tether Operations is also launching a GBP backed stablecoin this month.