By
Benjamin Njiri
April 23rd, 2024
Citing a major opportunity in UK’s evolving market, Blackfridge launched its new GBP-pegged stablecoin Poundtoken.
FinTech firm Blackfridge has launched a new stablecoin pegged to the British Pound GBP. Dubbed as “pound token” or GBPT, the stablecoin seeks to boost the adoption of digital assets across the United Kingdom.
The poundtoken stablecoin will be available for trading under the GBPT ticket on popular crypto exchanges like Bittrex Global, Gate.io, and Uniswap. As the name suggests, GBPT will be fully backed by the British Pound. Thus, every token issued will have an equivalent value of GBP in reserves held.
Isle of Man Financial Services Authority will be responsible for regulating GBPT’s reserve status. This is the same entity that overseas deposit and investment businesses in the self-governing British Crown Dependency.
Furthermore, Big Four giant KPMG will be auditing all the reserves for the poundtoken GBPT. The auditing process shall occur every month.
Nicholas Maybin, poundtoken’s chief operating officer, believes that stablecoins are an integral part of the crypto sector. Stablecoins make crypto trading more convenient for traders instead of exchanging fiat every time on the exchange.
However, the use of stablecoins has expanded over the years. Stablecoins have turned into a popular choice for remittances, payments, lending, and escrow services. Furthermore, they have played a crucial role in the decentralized finance market (DeFi).
GBPT Stablecoin Poundtoken vs Tether
Stablecoin issuers are increasingly turning their heads to the UK crypto market which is growing from strength to strength. Also, the British Pound remains one of the most widely traded currencies in the world. As per the Bank of International Settlements, Sterling’s share of global over-the-counter foreign exchange turnover was 12.8%. This makes it the fourth-most actively traded currency in the world.
The new poundtoken stablecoin will certainly face competition as strong market players like Tether have entered the market. Last month, stablecoin issuer Tether unveiled its new stablecoin GBP₮, pegged to the British Sterling Pound. Commenting on the launch, Paolo Ardoino, CTO of Tether said:
“We believe that the United Kingdom is the next frontier for blockchain innovation and the wider implementation of cryptocurrency for financial markets. We hope to help lead this innovation by providing cryptocurrency users worldwide with access to a GBP-denominated stablecoin issued by the largest stablecoin issuer.
One thing is clear the UK market is becoming more attractive for crypto players.