Tap Launches Own Stablecoin “Stabld”

Tap Launches Own Stablecoin "Stabld" to Support Acceleration of Earn Product Through Easier Movement Within Tap Ecosystem

Tap Global Group plc (AIM: TAP), an innovative digital finance hub that brings money payments and crypto settlement services together in a single user-friendly app, is pleased to announce the launch of Stabld, the Group's own stablecoin, live within the Tap app's Earn product from today. This is the first step in a broader initiative the Group describes as "the settlement layer for modern money".

By owning both the stablecoin and the rails that move it, Tap can control every on- and off-ramp end-to-end resulting in seamless 1:1 conversion, instant settlement across the payment networks it connects to, and - through its B2B business - that same instant settlement for other companies, turning Tap's own infrastructure into a product that wins new customers.

Stabld is the brand for the Group's planned family of fully-reserved, fiat-backed stablecoins: stUSD, stGBP and stEUR. Each is designed to be redeemable on a one-for-one basis for its reference currency, supported by the Group's own infrastructure to issue, move, convert and settle them. Unlike many providers, which rely on a third party's stablecoin, the Group issues these coins itself and intends to operate the rails that move them.

The Group's longer-term ambition is for Stabld to function as a global settlement layer across its payment ecosystem, enabling value to move instantly, around the clock and across borders. In stages, The Group intends to use Stabld first for the movement of funds between the Group entities and, subsequently, for settlement with the payment providers and partners with which it works, with the aim of reducing reliance on pre-funded settlement (nostro / vostro) accounts and improving liquidity and capital efficiency.

Phased Rollout

Stabld is being introduced in a phased manner. From launch it operates within the Tap ecosystem, where users can convert into and use it via the Tap Earn product. Further capabilities, including additional currencies and wider, public availability, will follow in stages, subject to regulatory, technical and operational milestones.

Tap Earn

From launch, Stabld can be held and used within Tap Earn, through which eligible users may earn variable rewards of up to 8% per annum on participating balances. Earn is a separate product provided by a Group entity; rewards are variable and not guaranteed, capital is at risk, and eligibility and availability vary by jurisdiction. The Stabld tokens themselves do not pay interest or yield. Any promotion of Earn is made in accordance with applicable financial-promotion requirements.

Market Opportunity

The Group believes Stabld can serve a broad range of businesses that move money, including fintechs and payment service providers, marketplaces, payroll and remittance, trading venues and corporate treasury - both as a customer-facing product and, over time, as an internal and ecosystem settlement tool.

The stablecoin and digital-payments market is one of the fastest-growing areas of financial services, and the Board believes the initiative represents a significant opportunity to deepen user engagement, create potential new revenue streams (including income on reserve assets and transaction-related fees) and improve treasury and settlement efficiency, building on the Group's existing regulatory permissions and technology, including the distributed-ledger-technology registration held by Tap Global Limited in Gibraltar.

Arsen Torosian, Chief Executive Officer of Tap, commented:

"Today we're launching Stabld, our own stablecoin, live in the Tap app's Earn product. It's the first step toward a bigger ambition - the settlement layer for modern money: a family of fully-reserved digital currencies in the dollar, the pound and the euro, and the infrastructure to move them across our ecosystem and, in time, with the providers and partners we work with. We'll build and release the rest in stages, and we look forward to updating shareholders as we go."