Poundtoken is the first British regulated sterling stablecoin issuer. The fiat equivalent value of Poundtoken (GBP) is held in safeguarded and segregated bank accounts, meaning it is always redeemable, one-to-one, for pound sterling. By providing safeguarded bank accounts, ClearBank enables the stablecoin reserves to be held at the Bank of England, offering greater peace of mind for holders.

ClearBank will also provide real-time transfers to enable instant funding and defunding of the stablecoin and maintain the correct fiat reserve at all times, supporting the always-on nature of blockchain-based currencies.

Stablecoins present unique benefits to users, including their ability to simplify international transactions and enable true peer-to-peer (P2P) digital transactions. The need for multiple international bank accounts is removed, as only one crypto wallet is required to facilitate cross-border transactions. In addition, as stablecoins operate with the need for third-party intermediaries, they minimise fees, transfer times and other inefficiencies often found with traditional currencies and banking systems.

“By pegging their value to a specific fiat currency, fiat-backed stablecoins are much less volatile, ensuring greater stability than other decentralised digital currencies. Providing that stability to our holders is key, ” said Mike Crosbie, Chief Executive Officer at Poundtoken. “When it came to selecting a banking partner, stability and speedy transfers to maintain our reserves were crucial factors for us. ClearBank provides the security and stability we need and we’re thrilled to be working with them.”

“Stablecoins are set to become a key part of our financial ecosystem, offering the stability of fiat currency married to the advantages of crypto,” said John Salter, Chief Customer Officer at ClearBank. “Working with Poundtoken, the first of its kind in the British Isles, means ClearBank is supporting this venture as it scales up and breaks new ground.”

Poundtoken is ClearBank’s first customer regulated by the Isle of Man Financial Services Authority.