Earlier in June, Tether Labs, the company behind the world’s leading stablecoin (USDT), announced that it was working on a token tied to the British pound. However, three weeks later, Blackfridge SC Ltd, a little-known FinTech company based out of the Isle of Man, beat them to it by introducing Poundtoken, the first British-regulated stablecoin pegged 1:1 with the Pound sterling (GBP).
Launched on July 11, 2022, Poundtoken is designed to incorporate the strengths of a regulated financial product with the benefits of blockchain technology and smart contracts. As a stablecoin, its value is never expected to rise significantly above the GBP. Therefore, GBPT is not so much for investment purposes as it’s a store of value, medium of exchange, and tool for cost-efficient and speedy international payments and settlements.
Backed 100% by GBP reserves
Keeping it simple but profoundly tuned to investor confidence, GBPT is 100 percent backed by fiat money stored safely in bank accounts. Holders can redeem their GBPT holdings for an equal amount of British Pound Sterling anytime, anywhere.
While many stablecoins claim to be backed by fiat currency, there is always an element of doubt regarding their claims. Therefore, Blackfridge has appointed KPMG as the auditor for its stablecoin. The firm will issue an attestation of GBPT’s cash reserve every month. This will help reassure investors that an equal amount of British Pounds always backs their investments in GBPT.
Regulated by financial authorities
Blackfridge SC Ltd is registered with the Isle of Man Financial Services Authority, which is backed and licensed by competent British financial regulators. Therefore, Blackfridge and its stablecoin are regulated by lawmakers of Isle of Man and the UK’s financial sector.
This is a significant aspect of GBPT. It means that the token will follow the laws and rules of both the Isle of Man and the UK and remain open to being regulated by competent authorities in both jurisdictions.
This is a reassuring feature given the growing number of failed stablecoin projects that have left investors with substantial financial setbacks. However, the company is aware that increased regulation should not come in the way of stablecoin’s chief goals — reduced volatility and increased adoption.
Where can you buy Poundtoken?
Currently, it is available on Gate.io, Uniswap, and Bittrex, while listing on other exchanges is also being planned. Also, it was introduced on the Ethereum blockchain, but Blackfridge intends to bridge it to other blockchains in the future.
Poundtoken has also partnered with Digivault, a leading custodial service provider in the UK. The partnership will provide GBPT holders with secure custody services, including physical vaults. Digivault is known for setting the bar for digital asset custody in the UK. It was the first standalone custodian in the region to receive FCA accreditation. It provides defense-grade solutions to several law enforcement agencies and institutional clients.
Benefits of Poundtoken
-Poundtoken will offer 24/7 real-time global settlements. Like any other blockchain product, GBPT brings speed, transparency, and security to the international transfer of values and assets.
-It is built on the Ethereum network and uses ERC20 smart contracts. This means all transactions are strongly encrypted to be immutable and secure.
-GBPT also helps GBP holders to convert their fiat GBP into cryptocurrency instantly and without paying any fees.