In a step that is likely to change the digital finance curve in the UK, British stablecoin start-up Agant is planning to launch the GBPA, a pound-pegged stablecoin that works within the confines of existing law. This is in recognition of the growing demand for a digital currency solution within the UK, particularly as more and more people and organizations are interacting with digital assets.
Agant’s evolution of GBPA addresses a huge market deficiency, namely the lack of a controlled GBP settlement asset in the digital space. Given that more than 6 million people and 32% of the UK’s establishments are already involved in digital assets, the need for a compliant, stable currency is at its highest. The founding members of Agant felt this particular gap firsthand, recalling, “The inspiration for GBPA came from seeing a personal need to settle transactions and store value on-chain in our native currency, pound sterling.”
Agant’s GBPA: Pound-Pegged Stablecoin for Seamless Transactions
What differentiates GBPA from current stablecoins is Agant’s focus on compliance from day one. The organization is in constant contact with UK regulation bodies, such as the Financial Conduct Authority (FCA) and Bank of England, so that their stablecoin will be fully compliant with the law. This approach is in stark contrast with competitors such as Tether (USDT), which has opted out of meeting the EU regulation on Markets in Crypto-Assets (MiCA).
In order to get rid of the concerns about the fluctuations associated with stablecoins, it is planned that the GBPA currency will be fully backed on a 1:1 basis with cash and high-quality liquid assets, which will be approved for usage. This backing strategy aims to comply with regulations to the letter, with an additional assurance that customers’ funds will only be kept in separate accounts. Additionally, Agant has made arrangements with top-ranked liquidity providers and market makers to ensure adequate market liquidity, thus providing more confidence in the stability of GBPA.
Bridging the Gap in UK Digital Asset Settlement
As part of Agant’s expansion plan, the company is entering into partnership agreements with the major blockchain ecosystems such as Solana, Avalanche, Ethereum and the like. Working with Archax, Copper, and Fireblocks will enhance its operational efficiencies. In addition, GBPA will use LayerZero technology to facilitate cross-chain integration, enabling efficient transactions with multiple blockchain networks. The firm’s proprietary FasterStables technology seeks to enhance the speed of token issuance and redemption as well.
Faster, Cheaper Remittances with Agant’s GBPA
Among the most exciting and innovative use cases for the GBPA is the change it would bring to the remittance market in the UK. Traditionally, remittance systems can process over £16 billion in bilateral flows and charge between 5-7% for their services. They incur about £1.2 billion of such fees for intermediaries each year. One of the companies providing those services argues that, for example, expenses connected with payment methods could be significantly changed into efficient, even removing those expenditures. The company states that, unlike conventional processes, which may last for up to five business days, with GBPA, transactions will be done almost in real-time.
Milestones Achieved in 2024
Agent has already been extremely successful in achieving some key milestones in 2024, which include:
-Completion of its Consumer MVP integrated with KYC processing, additional banking services, and Open Banking.
-Controlled access beta tests were completed with success.
-Cross-chain deployment architecture development through LayerZero.
-Gaining advancement towards compliance with the ISO 27001 standard.
-FasterStables have been developed to enable faster transactions from GBP to GBPA.
The Business Model Behind Agant’s GBPA Success
Agant will be taking steps to broaden their scope of work vis a vis going public in 2025, adding DeFi institutional tooling, putting on board on-chain FX partners, designing the remittance service, and providing tools for developers’ API.
The approach of Agant is two-faceted as it incorporates transaction charges alongside gaining revenue from the client’s funds, which are held in very liquid short-term UK gilts and other approved HQLAs. The corporation is of the view that regulatory adherence is fundamental for the growth and sustainability of GBPA in the changing digital age.
