Exclusive. Lugh stablecoin to be bought out

Is this the start of a new life for Lugh? According to our information, the former issuer of stablecoin euro EURL, owned by Casino Group, is about to be bought by Tempo France, a company registered with the Autorité de contrôle prudentiel et de résolution (ACPR) as a payment institution. The deal is worth around half a million euros.

Founded in 2008, Tempo specialises in payments, particularly international money transfers. At present, the company has suspended its activities while it complies with regulations. Its management team includes Karsten Kristine and Bagrat Safarian (Americans), Daniel Gazaryan (Cypriot), Alla Zhedik (Russian) and Souren Hayriyan (Armenian).

According to several sources close to the matter, Tempo was aiming to acquire a digital asset service provider (DASP), a status Lugh has held since July 2022. This acquisition should enable it to develop its offering around blockchain payments.

Tempo thus joins the growing list of players seeking to enter the emerging euro stablecoin market. This sector has been booming since the first part of the European MiCA (Market in Crypto-Assets) regulation on stablecoins came into force on 1 July. The first of these is currently EURC, issued by the American player Circle (€73 million in circulation).

Read also - Stablecoins: finally time for the euro?

Last June, Lugh stopped issuing EURL and asked users to recover their funds. The stablecoin's circulation had never exceeded €5 million, partly due to a system that was too restricted (long limited to customers of the broker Coinhouse only).

"Lugh was in discussions with the ACPR to obtain its electronic establishment licence, which is necessary to continue issuing stablecoin in Europe from 1 July 2024," explained a person close to the company. "But this was clearly not a priority for the Casino group, which had other challenges to face", he added. The group has been undergoing restructuring since early 2024 and has divested a number of assets.

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