Agant’s GBPA aims to transform UK’s digital finance landscape with regulatory-first approach News ▸ UK ▸ Stablecoins
Agant’s GBPA aims to transform UK’s digital finance landscape with regulatory-first approach
British stablecoin startup Agant aims to revolutionize UK's digital finance landscape with GBPA, with a view to offering a regulatory-compliant alternative to existing stablecoins while tackling remittance costs and cross-border transactions.
3 min read
Updated: Nov. 20, 2024 at 9:33 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
In a significant development for the UK’s digital asset ecosystem, Agant is preparing to launch GBPA, a pound sterling stablecoin designed to address the growing demand for regulated digital currency solutions.
With over 6 million individuals and 32% of UK institutions already active in digital assets, GBPA emerges as a potential game-changer in the realm of on-chain financial services.
Meeting Market Demand with Regulatory Compliance
The development of GBPA stems from a clear market gap: the absence of a reliable, regulated GBP settlement asset in the digital space. According to Agant, UK participants in the digital asset market currently face unnecessary FX risk due to the lack of a native GBP stablecoin solution. Highlighting the practical origins of the project, the Agant team stated:
“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.”
Unlike some existing stablecoin providers, Agant has adopted a compliance-first strategy, actively engaging with UK regulators. The company maintains ongoing dialogue with both the Financial Conduct Authority (FCA), with which it is preparing to submit an application, 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 Backing and Liquidity Management
To address common stablecoin volatility concerns, GBPA implements a comprehensive backing strategy. The stablecoin will be backed 1:1 by a combination of cash and approved high-quality liquid assets (HQLA), adhering to regulatory requirements.
All client funds will be held in segregated accounts, with Agant partnering with industry-leading liquidity providers and market makers to ensure sufficient market liquidity.
Strategic Partnerships and Cross-Chain Integration
Agant’s scaling strategy involves partnerships across major blockchain ecosystems, including Solana, Avalanche, and Ethereum. The company has secured collaborations with prominent industry players such as Archax, Copper, and Fireblocks secured collaborations with prominent industry players such as Archax, Copper, Hidden Road, Zodia, LMAX, Bullish, Flowdesk, and Fireblocks.
Technical innovation plays a crucial role in GBPA’s infrastructure. The stablecoin utilizes 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 Remittances and Cross-Border Payments
One of GBPA’s most promising applications lies in revolutionizing the UK’s remittance market, which currently processes over £16 billion in bilateral flows with fees ranging from 5-7%. This traditional system results in approximately £1.2 billion in intermediary fees. Contrasting this with traditional transfer methods that can take up to five business days and incur significant fees, Agant explains:
“Blockchain technology allows associated costs with the moving and custody of money to be greatly reduced to almost zero.”
2024 Roadmap and Future Developments
Agant has already achieved several key milestones in 2024, including:
- Completion of the Consumer MVP with automated KYC and Open Banking integration
- Private beta testing
- Development of cross-chain GBPA deployment via LayerZero
- Progress toward ISO 27001 compliance
- Development of FasterStables for efficient GBP-to-GBPA transactions
Looking ahead to 2025 and beyond, Agant plans to expand its offerings with:
- Public launch of the platform
- Integration of DeFi institutional tooling
- Onboarding of on-chain FX partners
- Development of remittance and payment solutions
- Release of developer API tools
Revenue Model and Regulatory Alignment
Agant’s business model combines transaction fees with yield generation from holding client funds in highly liquid short-term UK gilts and other qualifying HQLA, yielding at least the Bank of England base rate.
The company maintains strong commitment to regulatory compliance, viewing it as essential for GBPA’s long-term success in the digital economy.
As the UK continues to position itself as a hub for financial innovation, GBPA’s development represents a significant step toward bridging traditional finance with digital assets, potentially reshaping how the UK engages with blockchain technology and digital payments.
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Agant
Agant is an innovative UK-based financial technology firm specializing in the issuance of GBP sterling-backed stablecoins.