Agant, a UK-based company, is set to launch GBPA, a pound sterling stablecoin to meet the increasing demand for regulated digital currency solutions in the country. With over 6 million individuals and 32% of UK institutions already active in the digital asset market, GBPA aims to revolutionize on-chain financial services.
The idea for GBPA came from the Agant team’s personal need to settle transactions and store value on-chain in pound sterling. Unlike some stablecoin providers, Agant is taking a compliance-first approach by actively engaging with UK regulators, including the Financial Conduct Authority (FCA) and the Bank of England. This sets them apart from competitors like USDT, which have opted out of compliance in the EU.
GBPA will be backed 1:1 by cash and approved high-quality liquid assets (HQLA) to address concerns about stablecoin volatility. Client funds will be held in segregated accounts, and Agant has partnered with industry-leading liquidity providers to ensure sufficient market liquidity. The stablecoin also utilizes LayerZero for cross-chain functionality, allowing seamless operation across multiple blockchain networks.
One of the most promising applications of GBPA is its potential to transform the UK’s remittance market, which currently processes over £16 billion in bilateral flows with fees ranging from 5-7%. Agant believes that blockchain technology can significantly reduce associated costs with moving and custody of money to almost zero, making cross-border payments more efficient and cost-effective.
In terms of future developments, Agant has achieved several key milestones in 2024 and plans to launch the platform publicly in 2025. The company aims to expand its offerings, integrate DeFi institutional tooling, onboard on-chain FX partners, develop remittance and payment solutions, and release developer API tools. Their revenue model combines transaction fees with yield generation from holding client funds in highly liquid assets, aligning with regulatory compliance for long-term success.
As the UK positions itself as a hub for financial innovation, GBPA’s development represents a significant step in bridging traditional finance with digital assets. This move has the potential to reshape how the UK engages with blockchain technology and digital payments. Agant’s commitment to regulatory compliance and innovative solutions positions them as a key player in the UK’s digital asset ecosystem.
