TrustToken, a San Francisco-based privately held firm that provides “a platform to create asset-backed tokens” which can be actively traded on exchanges throughout the world, has launched a new stablecoin, called TrueGBP.
Prior to releasing TrueGBP, the TrustToken team had introduced another (now widely adopted) stablecoin, referred to as TrueUSD. The TrueUSD is reportedly backed, or pegged 1:1, with the USD – while the newly announced TrueGBP is pegged 1:1 to the British pound (GBP).
Being pegged 1:1 with a fiat currency means that the company that has issued such a digital asset holds the equivalent amount in fiat deposits. For example, if the circulating supply of a stablecoin, pegged 1-to-1 with the GBP, is 5 million, then the firm that issues it must have at least £5 million in reserves.
TrueGBP Only The First Of Several New Currencies To Launch “In Coming Months”
In an official blog post (published by TrustToken on April 2nd), the US-based company noted:
The new British Pound-backed stablecoin, TrueGBP, is the first of several currencies TrustToken is planning to launch in the coming months to open up new opportunities for payments, international remittances, and foreign exchange.
As detailed in TrustToken’s announcement, TrueGBP will “utilize a similar legal and technical infrastructure” to that used to create and issue the TrueUSD. TrustToken, which has received $21.7 million in total funding, mentioned in its blog post that its fiat reserves are subjected to “monthly attestations” performed by Cohen & Co., a Philadelphia-based institutional financial services firm.
New Dashboard To Launch “In Early March”
In addition to developing stablecoins, TrustToken’s management is planning to release a new dashboard “in early March.” The redesigned dashboard will reportedly provide “real-time confirmation of the funds that back all of their stablecoins.” Currently, TrueGBP can be purchased from several over-the-counter (OTC) desks including Alameda Research, Bluefirt Capital, QCP Capital, and Galois Capital. TrustToken’s management is also presently preparing to introduce TrueGBP on major digital asset exchanges.
Commenting on the launch of TrueGBP, Rafael Cosman, the co-founder at TrustToken, remarked:
We are excited to be launching TrueGBP to provide our users with access to one of the most traded currencies in the world. 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.
According to TrustToken’s blog, products such as TrueGBP will allow for “frictionless exchange of global assets that settle within minutes.” The firm also believes that stablecoins have been “major onramps” between the traditional financial industry and the cryptoasset ecosystem.