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USDC's Circle to launch Euro Stablecoin

Jun 28, 2022

USDC's Circle says it will launch a euro-denominated stablecoin known as Euro Coin

Circle who owns and operates USD Coin, the second-most-popular stablecoin in the industry with a market value of more than $54 billion announced the launch of its fully regulated, 1:1 Pegged 'full-reserve model’ euro-backed stablecoin.

 

EUROC, Circle's latest venture joins a short list of euro-backed stablecoins including the Tether's EURt, Stasis EURS and e-money.com's existing suite of 100% Collateralised European Stablecoins (EEUR, ECHF, ENOK, ESEK, EDKK).

 

Circle Cofounder and CEO Jeremy Allaire said in the official press release,

 

 “There is clear market demand for a digital currency denominated in euros, the world’s second most traded currency after the US dollar. With USDC and Euro Coin, Circle is helping to unlock a new era of fast, inexpensive, secure and interoperable value exchange worldwide,”

 

According to the Bank for International Settlement (BIS), the euro is the world’s second most sought-after fiat currency after the US dollar. A total of 19 Eurozone countries share this fiat currency, making it the second-largest fiat currency in existence.

 

The official statement released on the Circle's website.

 

“Together, Euro Coin and USDC unlock new possibilities for multi-currency digital banking and near-instant foreign exchange, where daily volume in traditional markets can top $6.6 trillion globally,”

 

The statement said,

 

“Euro Coin is a regulated, euro-backed stablecoin issued under the same full-reserve model and built on the same pillars of trust, transparency, and security that have made USDC one of the world’s most trusted digital currencies,” and will be made up of "cash and euro government debt only."

 

The stablecoin is launching at a time of major declines in the value of cryptocurrencies like bitcoin, which has led crypto firms to fail and erase billions of dollars of digital wealth. That has led to calls for government regulation, which the European Union is getting close to approving.

 

Jeremy Allaire said in an interview,

 

“This is actually, in some ways, it’s a great time to be launching products, the market turmoil has been a really positive catalyst for USDC. It has been the flight to safety for crypto.”

 


The Euro Coin (EUROC) will be backed by euro-denominated reserves held by U.S. regulated financial institutions and be launched from the United States with an initial release to institutional investors.

 

According to Circle’s official website, Euro Coin is initially only accessible via Silvergate’s Euro SEN network, which requires potential users to have an active banking relationship with the bank. Once trading on exchanges proceeds, individual users and businesses will be able to trade for Euro Coin and withdraw EUROC from exchanges.

 

The Euro Coin will first appear as an ERC-20 token powered by the Ethereum blockchain and be compatible with Ethereum compatible wallets. Support for other networks will be added in due course. It will be used for making payments, trading, and DeFi activities like lending and borrowing. The launch of the EUROC is expected to add liquidity to businesses that rely on the availability of the Euro for their transactions and could potentially become a major conduit for moving cryptocurrencies throughout Europe.

 

Regulators and lawmakers in the European Union (EU) are in the process of setting up rules for stablecoin issuers looking to serve customers in the bloc’s 27 member states. The Markets in Crypto Assets (MiCA) legislation, set to be finalised by the end of June, includes stringent rules particularly for large stablecoin issuers.

 

Circle’s Euro Coin will be tradable on some of major crypto exchanges, including Binance, starting on June 30.


https://www.globalstablecoins.co.uk

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