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Circle Launches Euro-backed Stablecoin

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Joyashree Dey Follow

INDIA

Jun, 21 2022

Jun, 21 2022

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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.


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Joyashree Dey

CBW - External Analyst

INDIA

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