TrustToken Team Expands Stablecoin Portfolio with TrueGBP

The new asset pegged to the British pound will release evidence of fiat reserve backing in the coming days.

TrustToken, the creator of TrueUSD (TUSD), one of the leading stablecoins, expanded its portfolio with the TrueGBP asset. As with other stablecoins coming from this issuer, TrueGBP will be backed by fiat reserves with regular reviews by a third party.

“We are excited to be launching TrueGBP to provide our users with access to one of the most traded currencies in the world,” said Rafael Cosman, co-founder of TrustToken. “With TrueUSD, we have built the bridge between the fiat and crypto world, without being tied to any one exchange. Our goal in launching TrueGBP is to fully utilize this bridge to reduce the friction within global financial markets, to seamlessly increase the speed and decrease the cost of transferring value across global borders.”

The new asset will trade under the TGBP symbol. Backing by fiat will be achieved by storing British pounds in a US-based escrow account. The TrustToken team notes the addition of the new asset is its first major product expansion. The addition of TGBP happens at a time when the Brexit procedure may see Britain separated from the European financial system. A token-based solution to transfer funds would avoid complications in case of Brexit and potential banking limitations.

Stablecoins are becoming increasingly important as a way to transfer funds between exchanges and achieve a single entry and exit point for fiat operations. Exchanges often see difficulties in securing banking partners, and stablecoins are a much cheaper way for international transfer of funds.

TUSD has a dedicated market against the USDT, and is used as one of the ways to move funds in and out of the digital asset market. At the same time, the leading stablecoin is still taking over 98% of the market, and sees extraordinary turnover in the past days.

In general, dollar-based stablecoins remain the most intuitive, and other asset-backed stablecoins are only seeing niche trading.