Fintech Next Generation acquires Lugh in order to launch digital payments

French fintech Next Generation has acquired Lugh Financial Services (LFS), a Digital Asset Service Provider (DASP) from the French retail giant, Casino Group. 

This acquisition is designed to bolster Next Generation’s bid for regulatory compliance under the European Union’s Markets in Crypto-Assets (MiCA) framework, enabling the company to gain certification that bestows legitimacy.

With this acquisition, Next Generation aims to build a fully integrated payment ecosystem that bridges the gap between traditional financial services and the growing digital asset sector. The company’s goal is to offer a comprehensive B2B solution for businesses ranging from large banks and international corporations to smaller enterprises, empowering them to manage transactions involving both fiat and digital currencies seamlessly.

Next Generation’s new ecosystem will provide an array of services, including digital asset custody, programmable third-party payments, payment processing, and easy integration between IBAN accounts and digital wallets. These features will allow businesses to efficiently execute cross-platform transactions, ensuring full regulatory compliance and offering robust settlement and accounting functionalities for all asset types.

One of the key components of the new payment ecosystem will be Next Generation’s proprietary EUR-pegged stablecoin, designed to act as a bridge between traditional and digital currencies. The stablecoin aims to facilitate smooth, efficient transactions while ensuring regulatory compliance in an increasingly digital and interconnected financial world.

“With the introduction of MiCA, digital assets like stablecoins have been integrated into the regulatory framework alongside traditional finance. Our new ecosystem will enable businesses to fully leverage this unified space by enabling them to work with both fiat and crypto assets simultaneously. This includes all critical payment aspects, such as KYC, AML, security, and more,” said Frank Combay, COO.

“The blockchain technology underlying our solution offers businesses faster transactions, lower costs, and scalability. Our ecosystem will serve as a state-of-the-art B2B solution that merges the best of both worlds—digital and traditional finance,” Combay added.