Groupe Casino, a Paris-based mass-market retail group with more than 11,000 stores, has launched the first Euro-pegged stablecoin, Lugh (EURL), on the Tezos blockchain. Groupe Casino developed this stablecoin in collaboration with Nomadic Labs, also a Paris-based R&D company focused on distributed, decentralized, and formally verified software.
Nomadic Labs’ official Twitter handle announced the news on Wednesday, March 17. Along with Groupe Casino and Nomadic Labs, Coinhouse, Societe Generale Bank, digital currency management platform Sceme, and PwC France are also partners to this first French stablecoin.
The announcement reads:
“Congratulations to #Lugh for launching the 1st euro-pegged digital asset issued on #Tezos blockchain. We are glad to have brought our technical expertise to Lugh alongside @Groupe_Casino @CoinhouseHQ @SocieteGenerale @ScemeHQ @PwC_France.”
Lugh (EURL) is backed by fully reserved FIAT Euros on a Société Générale bank account. EURL is pegged on a 1:1 basis with EURO. To ensure transparency, PwC France, an auditing company, will issue a report monthly on the number of EURL tokens issued and the balance of the associated bank account at Société Générale.
Coinhouse, a leading French player in the field of cryptocurrency investment for individuals and companies, will be the first exchange on which EURL will be listed. Societe Generale Bank will hold and manage the euro reserves for EURL. Nomadic Labs will manage all the operations related to the use of the Tezos blockchain. Sceme is the technology provider in charge of developing the EURL smart contracts, the token management platform, and environment monitoring.
Further reports state that Lugh (EURL) will be distributed in temporary exclusivity by Coinhouse. This exclusivity will remain in place until the issuance of the first 500,000 EUR-L has been completed. After this initial test phase, other cryptocurrency platforms will also be able to list EURL.
Initially, it is reserved for cryptocurrency investors but will gradually become a consortium that will offer a means of payment and a global loyalty program in partner brands. This is expected to happen in the next 12 to 24 months. Currently, the project is led by Groupe Casino but the shareholding will open up as the major B2C players join the adventure.
The Tezos blockchain is experienced a growing demand for stablecoin issuance. As Crypto Economy reported, Kolibri (kUSD), a stablecoin soft pegged to the US Dollar developed by Hover Lab, has also been launched on Tezos.
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