Nazia Saeed
UK-based cryptocurrency firm BCP Technologies has launched a new British pound-backed stablecoin, positioning it as a potential “live proof-of-concept” for future UK stablecoin regulations.
In an announcement shared on June 3, the company revealed the release of its Tokenised GBP (tGBP) stablecoin, now live on its in-house crypto trading platform, BCP Markets. The token is currently available to customers who have passed Know Your Customer (KYC) verification, with listings on major crypto exchanges expected in the near future.
The tGBP launch follows just days after the UK Financial Conduct Authority (FCA) opened a public consultation on proposed rules for stablecoin issuers and crypto custody providers, published on May 28.
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BCP’s tGBP may serve as a practical model for the UK’s evolving regulatory landscape. BCP works closely with the FCA and will participate in the FCA roundtable discussion on July 4 on the recently published consultation paper.
The stablecoin’s launch concludes a 14-month regulatory submission through the FCA’s Connect platform, including a one-month review inside the FCA’s regulatory sandbox.
Pound-Backed ERC-20 token
The tGBP stablecoin is fully backed by cash held in a segregated UK bank account, with each token representing one British pound. It has been launched as an ERC-20 token, meaning it is initially issued on the Ethereum blockchain. BCP proposes in the future to back tGBP with short-term UK government bonds, in line with the FCA discussion paper.
BCP Technologies, formerly known as BitcoinPoint, has been registered with the FCA as a crypto asset service provider since 2021. The firm originally aimed to democratize Bitcoin access via a cash-based model, but pivoted to a digital-only approach in response to regulatory changes. BCP was the first crypto company to implement open banking; you could buy Bitcoin by linking your bank account instantly.
At launch, tGBP is aimed at a broad range of applications including self-custody for retail and corporate users, cross-border transactions, institutional collateral, and decentralized finance (DeFi) lending. Marzouk also highlighted the stablecoin’s potential as the primary pound-denominated settlement rail for tokenized assets such as bonds, securities, and real estate.
Stablecoins enable open, instant, and frictionless transfers, free from volatility. Our vision is to abstract the complexity of blockchain with the familiarity of a GBP denomination, ultimately replacing GBP e-money with our GBP stablecoin.
BCP’s tGBP enters a relatively underserved market. According to CoinGecko data, only two pound-backed stablecoins are currently tracked VNX British Pound (VGBP) and Celo British Pound (CGBP) with a combined market capitalization under $500,000.
Other entrants include poundtoken (GBPT), launched by Blackfridge in 2022, and GBPA, a stablecoin developed by Agant, a member of the Digital Pound Foundation. Tether, issuer of the world’s largest stablecoin USDt, also introduced a GBP stablecoin in 2022, though it has yet to achieve significant adoption.
