BCP Technologies’ CEO described the newly introduced pound-linked stablecoin, tGBP, as a potential “real-time proof-of-concept” that could inform forthcoming stablecoin regulations under the FCA.
After undergoing a 14-month evaluation within the Financial Conduct Authority’s (FCA) regulatory sandbox, BCP Technologies, a cryptocurrency company registered in the United Kingdom, has introduced a new stablecoin backed by the British pound.
TGBP has officially launched on the BCP Markets crypto trading platform, which is operated by BCB Technologies. It is currently accessible to users who complete Know Your Customer verification, and major exchanges are anticipated to list tGBP in the upcoming weeks.
Pilot Model for Upcoming FCA Stablecoin Rules
The launch of TGBP follows closely on the heels of the Financial Conduct Authority’s May 28 initiation of a public consultation regarding new regulatory guidelines for stablecoin issuers and cryptocurrency custody firms.
Marzouk stated that BCP Technologies finds itself in a distinct position, with tGBP potentially serving as a “live proof-of-concept” that could inform the future regulatory framework for stablecoins set by the FCA.
The CEO stated that BCP maintains a close working relationship with the FCA and is scheduled to take part in the FCA’s roundtable discussion on July 4, which will address the recently released consultation paper.
Ethereum-Based Stablecoin Pegged 1:1 to British Pound
TGBP operates as an ERC-20 token, initially launched on the Ethereum blockchain. Each token is equivalent to 1 British pound and is supported entirely by cash reserves held in a segregated bank account.
Marzouk informed Cointelegraph that BCP plans to support tGBP with short-term UK government bonds in the future, aligning with the recommendations outlined in the FCA’s discussion paper.
According to official records from the Financial Conduct Authority, BCP Technologies—previously operating as BitcoinPoint—has served as an FCA-registered crypto asset service provider since 2021 and currently acts as the issuer.
Marzouk explained that the platform originally operated under the name “BitcoinPoint,” with the goal of making Bitcoin accessible to everyone by simplifying the purchasing process.
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.
Diverse Applications Drive Stablecoin Adoption
At the time of its debut, tGBP has been designed to address various applications, such as offering self-custody solutions for both retail users and enterprises as a substitute for traditional banking, enabling cross-border transactions, supporting collateral management for institutions, and facilitating decentralized finance lending.
Marzouk noted that the newly launched stablecoin is anticipated to serve as the primary pound-denominated payment rail for the settlement of tokenized assets, including real estate, bonds, and securities.
In the announcement, the CEO emphasized that stablecoins support seamless, real-time transactions without the risk of volatility. He added that the goal is to simplify blockchain usage by maintaining the familiarity of a GBP-denominated asset, aiming to eventually replace traditional GBP e-money with their GBP-backed stablecoin.
Scarcity of British Pound-Backed Stablecoins in the Market
The entry of BCP into the market has occurred in an environment where competition remains limited.
Data provided by CoinGecko indicates that, as of now, only two pound-pegged stablecoins are being tracked — VNX British Pound (VGBP) and Celo British Pound (CGBP) — and together, they account for a market capitalization of under $500,000.
Additional pound-backed stablecoin initiatives have been introduced, such as “poundtoken” (GBPT) by Blackfridge in 2022, and GBPA, a stablecoin created by Agant, a member of the Digital Pound Foundation.
Tether, the company behind the world’s largest stablecoin USDt, made an effort to introduce a pound-backed stablecoin in 2022; however, the initiative has yet to gain notable traction in the market.
