France-based Lugh Company and crypto trading platform Coinhouse have developed a euro-backed stablecoin. The Lugh stablecoin (EUR-L) will be pegged to the euro reserves that are held in an account with Société Générale.
The announcement was made by the Lugh Company on Thursday, which mentions that “In order to guarantee the stability of the Lugh (EUR-L), for each digital asset issued, one euro will be held in a dedicated bank account.”
What’s more, the company says that this stablecoin has been created in a trustworthy environment and is supported by key experts, including Société Générale, which is the account holder of the issuing company, and PwC France and Maghreb that will “issue a report each month on the number of Lugh (EUR-L) tokens issued and the balance of the associated bank account held with Société Générale.”
To ensure an environment of trust around its digital asset, the Lugh Company has presented the stablecoin to the French regulatory authorities and “is willing to comply with the current regulatory framework.”
The Lugh digital asset will be made available on the Coinhouse platform in order to facilitate crypto asset trading for individual or professional investors interested in a hedge against the risk of volatility. Once the company takes this step, it aims to develop new blockchain-based financial services.
The Lugh (EUR-L) will be issued on the Tezos blockchain, and technologically, the company will benefit from the expertise of Nomadic Labs, SCEME, and Casino Group.
The announcement mentions that the Lugh Company is the first “player to issue stable digital assets pegged to the euro in a trustworthy environment.”
Coinhouse is a Digital Asset Service Provider that offers crypto asset management and transaction services since 2015. Coinhouse is also the first company that has obtained mandatory registration of its activities within the Autorité des Marchés Financiers (AMF).