On November 12, the London Block Exchange coined LBX Peg (GBPP), the pioneering stablecoin whose value is pegged to the sterling pound in a 1:1 ratio. The pounds on which the value of LBX Peg is pegged are stored in a designated bank account in British commercial banks.

The essence of the LBX Peg token is to facilitate the seamless transfer of digital sterling pounds. The LBX crypto exchange will provide the decentralized blockchain network on which the cross-border transactions will be made. Blockchain technology will ensure that all transactions are transparent, fast, affordable, and verifiable. Some of the potential application areas for this blockchain ecosystem include paying for goods and services and deploying smart contracts for distributing dividends.

The LBX Peg token operates on the ERC621 protocol based on the Ethereum blockchain. The ERC621 protocol is an improvement on the more established ERC20 protocol that was renowned for its flexibility in the issuance of tokens so that they match with the amount of sterling pounds stored in the aforementioned special accounts. The development team selected the Ethereum network over other platforms because of its efficiency, transparency and commitment to improving scalability.

In the future, LBX will launch the stablecoin on other blockchain platforms.