The London Block Exchange (LBX) has minted what is dubbed as ‘the first crypto-pound’, (or ‘stablecoin’) LBX Peg.
“This is the first fully audited blockchain based, fully collateralised token tied to the value of pound sterling (‘GBP’) held in a segregated UK bank account on a 1:1 basis. To view the historic transaction on etherscan click here!” it says in a blog post.
“LBX Peg allows users to transfer the digital equivalent of GBP quickly, easily and on a global scale through a decentralised network. It makes the transfer of money traceable and trustless and, as such, has a wide range of use cases; from payments to merchants to a smart contract-based distribution of dividends for a company’s shareholders,” it adds.
LBX says that it chose to launch on the Ethereum blockchain to “develop, distribute and manage its issuance as the blockchain is transparent, efficient and close to reaping the benefits of its upcoming scaling solutions. LBX Peg is officially an ERC-621 token — building upon the ERC-20 standard — which grants the required flexibility in the total supply to match the quantity of GBP held in the segregated bank account”.
Plans are afoot to launch on a number of other blockchains and the venture is also exploring a Stellar token and Plug Blockchain variants.