Today, the London Block Exchange (LBX) minted their first ‘crypto-pound’ – LBX Peg, a stablecoin pegged 1:1 to the value of sterling. It is the first fully audited blockchain based, fully collateralized token tied to the value of pound sterling (GBP) held in a segregated UK bank account on a 1:1 basis.
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.
The company launched LBX Peg on the Ethereum blockchain initially 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.
LBX said it also has plans to launch on a number of other blockchains too, with similar dynamics, and is currently exploring a Stellar token and Plug Blockchain variants.
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