Agant, a key player in the UK’s digital asset ecosystem, is set to introduce GBPA, a pound sterling stablecoin that aims to meet the rising demand for regulated digital currency solutions. With a significant portion of the UK population and institutions already involved in digital assets, GBPA has the potential to transform on-chain financial services.
Addressing Market Demand with Regulatory Compliance
The creation of GBPA originated from a noticeable gap in the market: the absence of a trustworthy, regulated GBP settlement asset in the digital realm. Agant recognized that UK participants in the digital asset market face unnecessary foreign exchange risk due to the lack of a native GBP stablecoin solution. The team at Agant mentioned, “The inspiration for GBPA came from the founding team seeing a personal need to settle transactions and store value on-chain in our native currency pound sterling.”
In contrast to some competitors, Agant prioritizes compliance and engages with UK regulators, including the Financial Conduct Authority (FCA) and the Bank of England. This compliance-first approach differentiates Agant from providers like USDT, which have chosen not to comply with MiCA regulations in the EU.
Robust Asset Backing and Liquidity Management
To address concerns about stablecoin volatility, GBPA will be backed 1:1 by a mix of cash and approved high-quality liquid assets (HQLA) to meet regulatory standards. Client funds will be held in segregated accounts, and Agant will collaborate with leading liquidity providers and market makers to ensure ample market liquidity.
Strategic Partnerships and Cross-Chain Integration
Agant’s growth strategy includes partnerships with major blockchain ecosystems such as Solana, Avalanche, and Ethereum. The company has established collaborations with industry leaders like Archax, Copper, and Fireblocks. GBPA leverages LayerZero for cross-chain functionality and incorporates Agant’s proprietary FasterStables technology to streamline token issuance and redemption processes.
Transforming Remittances and Cross-Border Payments
GBPA has the potential to revolutionize the UK’s remittance market, which currently sees over £16 billion in bilateral flows with fees ranging from 5-7%. By utilizing blockchain technology, Agant aims to reduce associated costs with money movement and custody to almost zero, contrasting with traditional transfer methods that can be costly and time-consuming.
2024 Roadmap and Future Developments
In 2024, Agant achieved several milestones, including completing the Consumer MVP, private beta testing, developing cross-chain deployment via LayerZero, making progress toward ISO 27001 compliance, and creating FasterStables for efficient GBP-to-GBPA transactions. Looking ahead to 2025, Agant plans to launch the platform publicly, integrate DeFi institutional tooling, onboard on-chain FX partners, develop remittance and payment solutions, and release developer API tools.
Revenue Model and Regulatory Alignment
Agant’s revenue model includes transaction fees and generating yields from holding client funds in short-term UK gilts and other qualifying HQLA, ensuring a minimum yield equal to the Bank of England base rate. The company emphasizes regulatory compliance as crucial for GBPA’s long-term success in the digital economy.
As the UK solidifies its position as a center for financial innovation, the development of GBPA represents a significant step toward bridging traditional finance with digital assets, potentially reshaping the UK’s engagement with blockchain technology and digital payments.
