BCP Technologies, a United Kingdom-registered cryptocurrency firm, has launched a new British pound-backed stablecoin.
The company revealed the rollout of its Tokenised GBP (tGBP) stablecoin in an announcement shared with Cointelegraph on June 3.
TGBP is now live on BCP Technologies-operated crypto trading platform, BCP Markets, and is available to customers who pass Know Your Customer checks, with major exchanges expected to list tGBP in the coming weeks.
“There are two large exchanges that we are finalising details with. We are hoping to be able to announce these in the following weeks,” BCP Technologies CEO Benoit Marzouk told Cointelegraph.
“Live proof-of-concept for future FCA stablecoin regulation”
TGBP’s launch comes days after the UK Financial Conduct Authority launched a public consultation on proposed new rules for stablecoin issuers and crypto custody providers on May 28.
According to Marzouk, BCP Technologies is in a unique situation where tGBP might be considered a “live proof-of-concept for future FCA stablecoin regulation.”
“BCP works closely with the FCA, and will participate in the FCA roundtable discussion on July 4 on the recently published consultation paper,” the CEO said.
The launch follows a 14-month submission process as a new product in the FCA Connect and a one-month review in the FCA regulatory sandbox.
1:1 stablecoin issued on Ethereum
TGBP is backed fully with cash held in a segregated bank account, with each token minted representing 1 British pound. The stablecoin is launched as an ERC-20 token, meaning that it is initially issued on the Ethereum blockchain.
“BCP proposes in the future to back tGBP with short-term UK government bonds, in line with the FCA discussion paper,” Marzouk told Cointelegraph.
Acting as the issuer, BCP Technologies has been an FCA-registered crypto asset service provider since 2021, formerly known as BitcoinPoint, according to official FCA records.
“Historically, it was a platform ‘BitcoinPoint’ to democratise access to Bitcoin, where anyone could buy Bitcoin easily,” Marzouk said, adding:
“When the regulation came in 2020, BCP had to stop cash and pivoted into a more standard ‘buy online’ app. BCP was the first crypto company to implement open banking; you could buy Bitcoin by linking your bank account instantly.”
Multiple use cases
At launch, tGBP targets a broad range of use cases, including self-custody for retail and corporations as an alternative to banks, cross-border payments, institutional collateral management and decentralized finance lending.
The new stablecoin is also expected to be used as the main pound rail for settling tokenised assets like bonds, securities or real estate, Marzouk said.
Related: UK-listed IG Group launches crypto trading to retail investors
“Stablecoins enable open, instant, and frictionless transfers, free from volatility. Our vision is to abstract the complexity of blockchain with the familiarity of a GBP denomination, ultimately replacing GBP e-money with our GBP stablecoin,” the CEO stated in the announcement.
Limited availability of pound stablecoins
BCP’s launch enters a market with limited competition.
According to data from CoinGecko, there are only two tracked pound stablecoins at the time of writing, including VNX British Pound (VGBP) and Celo British Pound (CGBP), with a combined market cap of less than $500,000.
Other pound stablecoin projects include the “poundtoken” (GBPT) stablecoin launched by Blackfridge in 2022 and a pound (GBPA) stablecoin developed by the Digital Pound Foundation member Agant.
Tether, issuer of the world’s largest stablecoin USDt (USDT), attempted to launch a pound stablecoin in 2022, but it has not achieved significant adoption in the market.
Magazine: Crypto wanted to overthrow banks, now it’s becoming them in stablecoin fight
