Tokenised GBP (tGBP) is a digital asset designed to track the British Pound Sterling (GBP) 1:1 on the blockchain. It provides a regulated pathway for users to hold and move GBP value within the digital asset ecosystem.
What is tGBP structurally?
tGBP is a fiat-backed stablecoin issued by BCP Technologies (formerly BitcoinPoint), a firm registered with the UK Financial Conduct Authority (FCA). Each token is backed by equivalent reserves of cash and short-dated UK government securities.
The asset is available as a native token on Ethereum and Base. This structure ensures that every tGBP in circulation is collateralized by assets held in segregated bank accounts at UK-regulated financial institutions, maintaining a constant 1:1 peg with the pound sterling.
How it works in practice
Users typically acquire tGBP by depositing GBP through supported UK banking rails. Once the funds are verified, the issuer mints the equivalent amount of tGBP and delivers it to the user’s wallet address.
As a multi-chain asset, tGBP can be used within decentralized finance (DeFi) protocols or transferred between wallets with near-instant settlement. Redemption follows the reverse process, where tokens are burned in exchange for GBP sent to a linked bank account.
Fees and pricing mechanics
BCP Technologies generally offers 0% fees for the direct minting and redemption of tGBP for verified users. This model is intended to minimize the costs associated with moving between traditional bank deposits and on-chain assets.
While the issuer does not charge management fees, users are responsible for network transaction fees. By using Layer 2 networks like Base, users can significantly reduce these costs compared to transacting on the Ethereum mainnet.
Limits, eligibility, and availability
tGBP is subject to evolving UK regulations, including a Bank of England (BOE) proposal to implement temporary holding limits for systemically important stablecoins. These proposed caps—£20,000 for individuals and £10 million for businesses—aim to prevent abrupt deposit flights from banks.
The industry has expressed concern that such limits may be difficult to enforce on secondary markets and could stifle innovation. Accessing direct minting features requires completing a KYC process in compliance with UK anti-money laundering regulations.
Tradeoffs, risks, and limitations
A primary tradeoff is the regulatory uncertainty surrounding holding limits and reserve requirements. The BOE has proposed that issuers hold at least 40% of backing assets in unremunerated deposits at the central bank, which may impact the project’s economic model.
While tGBP is issued by an FCA-registered firm, it is not protected by the UK Financial Services Compensation Scheme (FSCS). Users assume the risk that reserves could be insufficient or that regulatory shifts could impact the asset’s transferability or utility.
