The first authorized British pound stablecoin is issued
Blackfridge, a fintech business is releasing a stablecoin called “poundtoken” that is pegged to the British pound and guaranteed by reserves of the British currency.
Isle of Man-based Blackfridge is launching the product with the assistance of British banking authorities. Circle and Tether are both planning to launch stablecoins backed by euros and Mexican pesos, indicating that the stablecoin industry is diversifying.
Blackfridge announced “poundtoken” a stablecoin regulated by the United Kingdom. The stablecoin with the ticker symbol GBPT is fully supported by pounds sterling reserves. It is the first-ever issuance of a regulated British pound stablecoin.
Stablecoins are cryptocurrencies whose value is pegged to a government-issued currency, often the U.S. dollar. Others, such as Circle, are centralised organisations. Blackfridge belongs to the latter group.
Alan Sun, the chief executive officer of Blackfridge, remarked that the cryptocurrency market has lately seen “tough” times, with many investors losing money due to Terra’s UST crash. He guaranteed that GBPT will provide “the stability of the British pound and the certainty of stringent British financial rules, paired with the speed, transparency, and integrity of blockchain technology.”
GBPT was first released on Ethereum, however expansion to more blockchains is anticipated. Currently, Poundtoken may be traded on UniSwap, Gate.io, and Bittrex Global, but the business promises that additional platforms will soon offer it.
Other stablecoin issuers are increasing their offerings, with top providers Circle and Tether planning to introduce euro-backed and Mexican peso-backed currencies, respectively.