Circle Launches Euro-backed Stablecoin


On June 16, USD stablecoin (USDC) issuer Circle
announced in a blog post that it will release the Euro Coin (EUROC), a
redeemable stablecoin backed by euros, available 24/7 and moves at the internet
speed.
The newest stablecoin from Circle will officially
launch on the Ethereum blockchain as an ERC-20 token on June 30, with plans to
increase additionally supported blockchains later this year.
Circle states in an official statement that Euro
Coin is 100% backed by euro-denominated reserves “held conservatively in the
custody of leading financial institutions within the U.S. regulatory perimeter,
beginning with Silvergate Bank.”
“Euro Coin is being issued under a regulated
framework for money transmission, under the same statutes that regulate USDC,
with full reserves in Euro,” Circle’s CEO Jeremy Allaire wrote in a tweet.
He added that Euro Coin will have “the same
security, liquidity and transparency” as USDC, the industry’s second-largest
stablecoin with a market capitalization of $54.5 billion.
“Euro Coin expands opportunities for payments,
on-chain FX, trade finance, commerce, and broader digital asset markets
use-cases,” continued Allaire. “The launch is symbolic of a shift in crypto
markets towards greater and greater utility value from blockchain
infrastructure.”
According to the company’s blog post, once
trading starts, Euro Coin will be accessible to non-Circle users on crypto
exchanges, such as Binance.US, Bitstamp, FTX, and Huobi Global, and popular
decentralized finance (DeFi) protocols, including Compound, Curve, and Uniswap.
Different partners incorporate custody service
providers Anchorage Digital, CYBAVO, and Fireblocks, as well as hardware wallet
Ledger and MetaMask Institutional, an institution-compliant adaptation of the famous
DeFi wallet.
As per Circle’s official website, Euro Coin is at
first just available through Silvergate’s Euro SEN network, which requires likely
clients to have a functioning financial relationship with the bank. Once exchanging
on trades starts, individuals and organizations will be able to exchange for
Euro Coin and pull out EUROC from exchanges and put it in Ethereum-compatible
wallets.
The website likewise states that from July
onwards, Grant Thornton LLP, a global network of independent accounting and
consulting firms, will month to month issue attestations of Euro Coin reserves.
"There is clear market demand for a digital currency denominated in euros, the world's second most traded currency after the U.S. dollar,” said Circle’s CEO Jeremy Allaire.

Joyashree Dey
CBW - External Analyst
INDIA