Tether pound token, GBPT, is a stablecoin that will be released by Tether at the start of July. The sterling based coin will initially work on the Ethereum blockchain, but the company is planning to add cross-chain support later. Tether is the same company behind the USDT, so it is highly likely that the new coin will gain mass adoption relatively quickly. Also, the pound sterling is among the most used fiat currencies in the world, and this can influence people to use the tokenized version of the currency. GBPT is 100% backed by British pound sterling reserves, while being fully supported by British regulators.
A Bit About GBP Tether
GBPT will be issued by Hong Kong-based Tether Limited, which is controlled by the owners of Bitfinex. It will join four other stablecoins that are issued by Tether, and these include EURT, CNHT, USDT, and the recently-launched MXNT. The coin will be used for regular transactions, but investors and traders will also use it to move between traditional financial systems and the crypto markets. Unlike the GBP, this token will be faster and less costly to transfer.
The safe pound sterling backed stablecoin from Tether.CryptoLists.com
The GBPT is backed by cash and commodities, just like the USDT. With these real-world assets, the issuer of the altcoin is able to guarantee holders that they can exchange their tokens for equivalent values of the GBP. This token is different from algorithmic stablecoins in that it is fully backed by real-world assets. Since the company is willing to work with UK regulators, holders will get reliable financial reports of the company.
Utility of GBP Tether?
Cryptocurrencies were originally intended to work like regular currencies and should be used to pay for goods and services. While many people use Bitcoin and similar coins to trade, these cryptocurrencies can expose holders to the risk of market volatility. For example, the value of Bitcoin can change drastically within a few hours, thus affecting the buying power of the holders. With the GBPT, people will be able to buy goods and services without getting exposed to market volatility. This is because the token will be backed by real-world assets and will always be exchanged with the GBP at a rate of 1:1.
Like the USDT, this new token will also help investors enter and exit trading positions quickly. This is especially important during times of market uncertainty. Stablecoins usually have very high trading volumes, especially if they are trusted sufficiently by the market. This makes them highly liquid, so investors can easily convert their cryptocurrencies to stablecoins at any time.
GBP Tether Price details
Advantages of GBP Tether
+ GBPT is issued by Tether, a trusted crypto firm.+ The pound stablecoin is pegged to a reputable fiat currency, GBP.
+ Holders will enjoy stability while using blockchain technology.
+ You can make fast transactions with GBP Tether.
+ GBP Tether will be monitored by authorities in the UK.
Disadvantages
- GBP Tether isn’t decentralized.- You can’t mine the token.
- Tether has had issues with US regulators.
- Since GBPT uses the Ethereum blockchain, transfer fees can be high.
Costs
▪ Rated at 9/10When transferring the pound token (GBPT) over the Ethereum network, you will have to pay gas fees that vary depending on the network usage. On average, these fees range at around $20. If you want for periods with low network traffic, you will be able to pay much lower fees.
Reputation and Buzz
▪ Reputation rated at 7/10▪ Buzz rated at 7/10
The GBPT is still a new token, so it hasn’t generated a lot of discussions online. However, Tether, its parent company is extremely well-known in the crypto and traditional financial sectors. It is the creator of the USDT, which is the largest stablecoin in the world. The USDT is ranked as the third-largest cryptocurrency overall, after Bitcoin and Ethereum. This points to the popularity and high levels of trust the market has in the coin and the company behind it. On Twitter, Tether has more than 272,000 followers.
FAQ
What is the difference between GBPT and USDT?
Although both of these tokens are issued by the same company, they are pegged to different currencies. The USDT is pegged to the US dollar, while the GBPT follows the price of the pound sterling. Also, the GBPT only uses the Ethereum blockchain, while USDT uses several other chains.
How do I know that the GBPT won’t be affected by market volatility?
The company behind the token has assets reserved in form of cash and cash equivalents. That means the tokens are backed in a ratio of 1 to 1 with real-world assets. You can, therefore, exchange your coins for equal values of GBP at any time.
Where can I use the GBPT?
You can use this stablecoin in online stores and brick-and-mortar establishments. Lots of businesses are likely to start accepting the token since it will offer low transfer fees and faster payments.
What happens when I redeem my tokens for fiat currencies?
Holders of the GBPT can exchange it for fiat currencies, and this can result in the burning of the tokens. This means the redeemed tokens will be out of circulation. They can also be held in the treasury so that they’re issued later depending on market demand.
Is Tether a transparent company?
All Tether tokens are backed 100% backed by the reserves of the company. Through the Transparency page of the company, you will be able to see the value of its reserves, as well as the number of tokens in circulation.
Will Tether launch a SEKT?
While the Swedish krona is among the 15 most traded on the forex market, there might still be a few stablecoins launched before by Tether. For instance, people are also missing JPYT, based on the yen, and the CADY, based on the Canadian dollar. None of those are live yet.
Will Tether launch a RUBT?
Even though Tether got many Russian clients, it's unlikely that they launch a rubel pegged stablecoin in the near future because of the war in Ukraine.
Screenshots from GBP Tether
