In a major development for the UK digital asset ecosystem, Agant is preparing to launch GBPA, a sterling stablecoin designed to meet growing demand for regulated digital currency solutions.
With over 6 million individuals and 32% of UK institutions already active in digital assets, GBPA is emerging as a potential game-changer in on-chain financial services.
Meeting market demand while complying with regulations
The development of GBPA stems from a clear market gap: the absence of a reliable, regulated GBP clearing tool in the digital space. According to Agant, UK digital asset market participants currently face unnecessary currency risk due to the lack of a native GBP stablecoin solution. The Agant team emphasized the practical origins of the project, stating:
“The inspiration for GBPA came from the founding team who saw a personal need to settle transactions and store value on-chain in our home currency, sterling.”
Unlike some existing stablecoin providers, Agant has adopted a compliance-first strategy, actively working with UK regulators. The company maintains an ongoing dialogue with both the Financial Conduct Authority (FCA), with which it is preparing to file, and the Bank of England. This sets Agant apart from competitors like USDT, which has notably opted out of MiCA compliance in the EU.
Robust asset support and liquidity management
To address common concerns about stablecoin volatility, GBPA is implementing a comprehensive support strategy. The stablecoin will be backed 1:1 by a combination of cash and approved High Quality Liquid Assets (HQLA), meeting regulatory requirements.
All client funds are held in segregated accounts, with Agant working with leading liquidity providers and market makers to ensure sufficient market liquidity.
Strategic partnerships and cross-chain integration
Agant’s scaling strategy includes partnerships among major blockchain ecosystems including Solana, Avalanche and Ethereum. The company has secured partnerships with prominent industry players such as Archax, Copper and Fireblocks.
Technical innovation plays a crucial role in GBPA’s infrastructure. The stablecoin uses LayerZero for cross-chain functionality, enabling seamless operation across multiple blockchain networks. Additionally, Agant’s proprietary FasterStables technology aims to streamline token issuance and redemption processes.
Transforming money transfers and cross-border payments
One of the most promising applications of GBPA lies in revolutionizing the UK remittances market, which currently handles more than £16 billion of bilateral money flows with fees ranging from 5-7%. This traditional system results in approximately £1.2 billion in agency costs. Unlike traditional transfer methods that can take up to five business days and incur significant costs, Agant explains:
“Blockchain technology means that the costs associated with moving and storing money can be greatly reduced to almost zero.”
Roadmap 2024 and future developments
Agant has already achieved several important milestones by 2024, including:
- Completion of the Consumer MVP with automated KYC and Open Banking integration
- Private beta testing
- Development of cross-chain GBPA implementation via LayerZero
- Progress toward ISO 27001 compliance
- Developed FasterStables for efficient GBP to GBPA transactions
Looking ahead to 2025 and beyond, Agant plans to expand its offering to include:
- Public launch of the platform
- Integration of institutional DeFi tooling
- Onboarding of on-chain FX partners
- Development of remittance and payment solutions
- Release of API tools for developers
Revenue model and coordination of regulations
Agant’s business model combines transaction costs with generating returns from holding client funds in highly liquid short-term UK government bonds and other eligible HQLAs, delivering at least the Bank of England base rate.
The company remains strongly committed to regulatory compliance and sees this as essential to GBPA’s long-term success in the digital economy.
As Britain continues to position itself as a hub for financial innovation, the development of GBPA represents an important step towards bridging traditional finance with digital assets, potentially reshaping the way Britain deals with blockchain technology and digital payments.