Poundtoken is a British Isles-regulated GBP stablecoin. Designed for stability, GBPT is backed by GBP held in GBP-denominated bank accounts so that it’s always redeemable 1:1 for pounds sterling. Poundtoken enables businesses to send and receive near-instant international payments; institutions to make markets and simplify international remittance; and individuals to transfer money, make cross-border payments, and participate in decentralized finance and Web3.
Poundtoken needed a way to enable real-time visibility into the off-chain reserves backing GBPT.
Poundtoken integrated Chainlink PoR to increase collateral transparency and help secure the minting function of GBPT.
By enabling visibility into off-chain reserves, Chainlink PoR helps users verify the collateralization of GBPT.
To give its users higher assurances, Poundtoken needed a way to offer real-time transparency into the off-chain fiat reserves backing GBPT. In addition, as the Poundtoken platform allows GBPT to be issued and redeemed immediately and directly to and from fiat, a robust verification solution is needed that helps secure the minting function of GBPT and also helps mitigate the risk of infinite mint attacks.
“Users want to be confident in holding stablecoins—having a window into off-chain reserves and a mechanism helping to prevent over-issuance is a significant game-changer.”
Michael Crosbie
Chief Business Officer, poundtoken.io
Poundtoken is using Chainlink PoR to help bring real-time reserve data on-chain through a direct API connection to Poundtoken’s custodian, Bank Frick. The bank’s reserve data, which is retrieved, stored, and displayed on-chain periodically, or triggered when GBPT is issued or redeemed, enables users to verify that the GBPT in circulation is backed by GBP held in reserve.
In addition, via an automated workflow, Chainlink PoR helps ensure that the circulating supply of GBPT does not increase beyond the amount held in the off-chain fiat reserves.
“We’ve had great feedback about our Chainlink integration. Our users value transparency, and the real-time Proof of Reserve feed helps display the off-chain reserve data in a simple manner to our users.”
Michael Crosbie
Chief Business Officer, poundtoken.io
With the integration of Chainlink Proof of Reserve, GBPT users have a transparent, accurate, and timely source of information regarding the off-chain reserves backing the stablecoin. Through a widget on the Poundtoken website that displays real-time reserve data alongside the circulating supply of GBPT, users can verify the collateralization of GBPT and have higher confidence in its backing when using the stablecoin across both CeFi and DeFi applications.
The PoR integration not only brings more transparency to GBPT, but it helps make the stablecoin a more reliable form of collateral and means of payment in the Web3 ecosystem.
