Crypto exchange Binance is sunsetting its GBP stablecoin, BGBP, which is tied 1:1 to the British pound.
The discontinuation takes place tomorrow, more than a year after Binance first listed the stablecoin in July 2019. The exchange is also delisting its last trading pair for BGBP — BGBP/USDC.
A Binance spokesperson told The Block that BGBP was the exchange's "first experiment" with a fiat-backed stablecoin and was "more of a proof-of-concept."
"It worked, but the issuance/redemption process was not the most friendly for users," said the spokesperson. "As such, to offer our users with better services, we have discontinued BGBP and will direct users to our other available fiat on-ramps that offer GBP."
Indeed, BGBP was issued by Binance, unlike its USD counterpart BUSD, which is a white-label of Paxos's stablecoin and has a smoother redemption process as compared to BGBP.
There also appears to be a lack of demand for BGBP. The stablecoin has a circulating supply of only about £700,000, according to CoinMarketCap. For context, BUSD has a circulating supply of over $662 million.
Another possible reason for the BGBP discontinuation could be the closing of Binance Jersey later this month. The fiat-to-crypto exchange was the primary platform to buy the stablecoin.
It is also worth noting that Binance's BGBP announcement comes ahead of draft stablecoin regulations by the U.K. The country's Treasury wants to regulate stablecoins to the same standards as rival payment methods. (Jersey is a self-governing dependency of the U.K.).