The poundtoken is a blockchain-based stablecoin pegged to the British pound sterling (GBP). With the rising interest in stablecoins, the poundtoken presents the perfect solution for UK-based crypto enthusiasts. As one of the first regulated GBP-based stablecoins, the poundtoken has an impressive and transparent means of ensuring that it is appropriately backed.
What is poundtoken (GBPT)?
As mentioned above, the poundtoken is a stablecoin pegged to the British pound sterling (GBP), meaning that the poundtoken price will always be equivalent to that of ￡1. The coin is issued by Blackfridge SC Limited, a fintech platform licensed and regulated by the Isle of Man Financial Services Authority. GBPT is the first regulated stablecoin in the British Isles.
Stablecoins are required to hold reserves for each coin in circulation, and poundtoken is no exception. Blackfridge, based in the Isle of Man, holds 100% fiat reserves in segregated accounts in a European bank, and undergoes monthly proof of reserve attestations and annual financial audits by KPMG.
With 2.45 million tokens as the maximum supply, poundtoken is an excellent option when looking for a GBP-backed stablecoin as it allows for direct GBP access to digital asset exchanges and DeFi (decentralised finance) protocols, while also ensuring frictionless real-time settlements.
Who created poundtoken?
Poundtoken was created by Alan Sun, Michael Crosbie and Nicholas Maybin as a solution to price volatility in the cryptocurrency space. Launched on July 11, 2022, the British Isles regulated GBPT was designed to merge the benefits of blockchain technology and smart contracts with the strengths of a regulated financial product.
Through its fully vetted audit system, the stablecoin ensures that investors are always in the know regarding its backing and can rest assured knowing that the stablecoin is backed appropriately. This comes as a breath of fresh air when compared to other failed stablecoin projects that have recently collapsed and tainted the crypto image for investors and law enforcement agencies alike.
How does poundtoken work?
For every GBPT released into circulation, ￡1 is held in safeguarded segregated accounts held in a European bank. These funds undergo monthly proof of reserve attestations as well as annual financial audits, both conducted by KPMG.
Poundtoken.io is built on the Ethereum network, while GBPT utilizes the ERC-20 token standard. The stablecoin then uses smart contracts to facilitate the purchase, storage, transaction and transparent collateralisation of the stablecoin.
How does poundtoken comply with strict British financial regulations?
As the first British-regulated stablecoin, poundtoken has attracted much attention from investors in the digital asset markets for its strict auditing process, entirely transparent to the public. Since complying with the rigorous British financial regulation requirements, holders can rest assured knowing that they can redeem their stablecoin for GBP at any given time.
Isle of Man Financial Services Authority
The issuing company, Blackfridge is fully regulated and licensed by the IOMFSA. Through this licensing, Blackfridge is required to hold GBP equal to the value of the tokens issued at all times.