Groupe Casino, a 120-year-old retail company, is reportedly rolling out a stablecoin pegged to the Euro, according to 21 Million. The Tezos-based stablecoin is currently being developed in partnership with Crypto Exchange Coinhouse, accounting firm PricewaterhouseCoopers, Stablecoin Infrastructure Provider Sceme, Research and Development Firm Nomadic Labs, and Financial Services Group Societe Generale.
Groupe Casino will launch the stablecoin dubbed as ‘Lugh’, named after a god in Irish mythology, with the ticker symbol as $EURL. Lugh will be the first French stablecoin backed by the Euro.
The initial coin offering will include 500,000 units that will be made available on the Coinhouse Cryptocurrency Exchange for a few months until the test phase is complete. It will then move on to being listed on other cryptocurrency exchanges.
Lugh stablecoin will be initially reserved for cryptocurrency investors as a means of payment and then a global loyalty program in partner brands.
Reportedly, the reserve for the stablecoin will be stored by Société Générale and audited every month.
Groupe Casino is a France-based mass-market retail group with over 220,000 employees and 11,000 stores worldwide. In 2017, the firm had revenue of €37.822 billion.
The retail giant operates across continents and in France with brands such as Géant Casino, Casino Supermarkets, Monoprix, Franprix, Leader Price, Spar, Vival, Le Petit Casino, and Casino Restauration.
Stablecoins are digital assets designed to have a consistent value over time in contrast to the volatility usually associated with cryptocurrency prices. To stabilize the value, stablecoins are collateralized, meaning that the total number of stablecoins in circulation is backed by assets held in reserve.