The first stablecoin issuer regulated by the British government is called Poundtoken. Because Poundtoken's (GBP) fiat equivalent value is kept in secure, separate bank accounts, it can always be redeemed for pound sterling one-to-one. Holders can rest easier knowing that the stablecoin reserves are kept at the Bank of England thanks to ClearBank's provision of secure bank accounts.

In order to support the always-on nature of blockchain-based currencies, ClearBank will also offer real-time transactions that will enable quick financing and defunding of the stablecoin and guarantee the right fiat reserve at all times.

Users of stablecoins have a number of special advantages, including as the capacity to facilitate real peer-to-peer (P2P) digital transactions and streamline international transactions. Since only a single cryptocurrency wallet is needed to enable cross-border transactions, there is no longer a need for numerous foreign bank accounts. Furthermore, stablecoins minimize fees, transfer times, and other inefficiencies frequently associated with traditional currencies and banking systems since they function without the need for third-party intermediaries.

Fiat-backed stablecoins, which guarantee more stability than other decentralized digital currencies, are significantly less volatile due to their peg to a particular fiat currency. Giving our holders that consistency is essential, according to Poundtoken CEO Mike Crosbie. "We considered reliability and quick transfers to keep our reserves intact while choosing a banking partner. We are excited to be working with ClearBank since they offer the consistency and security we require.”
 

According to John Salter, Chief Customer Officer of ClearBank, "stablecoins are set to become a key part of our financial ecosystem, offering the stability of fiat currency married to the advantages of crypto." "ClearBank is supporting this venture as it scales up and breaks new ground by working with Poundtoken, the first of its kind in the British Isles."

Poundtoken is the first client of ClearBank that is subject to Isle of Man Financial Services Authority regulation.