Circle Unveils Euro Coin (EUROC), Its First Euro-Backed Stablecoin

Circle unveils its euro-backed stablecoin

Circlethe issuing company of the stablecoin USDC, has just announced the arrival of his new stablecoin which will be, unlike the one already on the market, fully pegged to the euro.

Baptized ” Euro Coin and carrying the ticker EUROCthis new cryptocurrency will be put on the market from June 30 on the biggest exchanges such as Bitstamp, FTX, Huobi Global or Binance.US.

The stablecoin will thus join the – small – list of cryptocurrencies backed by the euro, like theEURt from Tether, the issuing company of USDT, the stablecoin with the largest market capitalization on the market for several years. Others exist like the EURL or the EURSbut it is dollar-backed stablecoins that largely dominate the market.

EUROC will benefit, according to Circle, the same guarantees of quality as its USDC, both in terms of transparency and security to ensure similar adoption. This therefore implies, just like the USDC, that the reserves of Circle are able to support the EUROC with a ratio of 1 to 1.

Circle’s reserves now provided for this purpose will be partly insured within the Silvergate Banka US Federal Reserve member bank specializing in digital assets.

Also according to Circle, an audit of its reserves will be provided by an external firm on a monthly cyclealways in order to favor maximum transparency.

👉 Find our page dedicated to the stablecoin USDC of Circle

A stablecoin deployed in America

Although it may seem paradoxical, EUROC will befirst deployed in the United States. A completely understandable choice for Circle, insofar as the European authorities are struggling to agree on a fair regulation of digital assets on European soil.

Indeed, the long-awaited MiCA regulationsthe finalization of which is expected by the end of the current month, plans to be relatively strict vis-à-vis these cryptocurrencies backed by fiat currencies.

Eva Kailithe vice-president of the European parliament, said last year on this subject that stablecoins could harm European financial integrity:

” [Les stablecoins] are affected by MiCA because they could actually raise concerns about the monetary policy, stability and sovereignty of the European Union. »

But Circle has understood it well, even if the European Union seems to be trying hard to miss the boat of digital assets and the possibilities that this implies, theeuro is very far from devoid of interest.

According to data from the Bank for International Settlements (BIS), the euro is the second most important fiat currency in the world behind the dollar for trade. According to its triennial survey published in 2019, the euro appears in 32% of currency trading.

Initially designed as a means of deploying liquidity to cryptocurrency holders, the use of stablecoins has found growing interest. Today, stablecoins serve in particular as means of transaction for unbanked people.

And their success is such that they seem set to overshadow the traditional system. Indeed, for example, Circle recently launched professional accounts fully dedicated to USDC transactionsa model that is far less restrictive than the traditional banking system.

EUROC will first launch on Ethereum

Scheduled to be put on the market on June 30, the EUROC will be built on the Ethereum (ETH) blockchain. Circle, however, clarified that this was a launching pad, and that the future was definitely ” multi-chain “.

It will therefore be launched as an ERC-20 standard token, and will be compatible with all Ethereum wallets.

In addition to the exchanges mentioned above, the Euro Coin will be supported as soon as it is released by the biggest protocols such as Compound, Curve, DFX, Uniswap, as well as on hardware wallets ledger. Circle also specifies that blockchain developers can already integrate the EUROC smart contract.

For Jeremy AllaireCEO of Circle, the arrival of EUROC signals the beginning of a new era:

“There is a clear market demand for a digital currency denominated in euros, the second most traded currency in the world after the US dollar. Together with USDC and Euro Coin, Circle is helping usher in a new era of fast, inexpensive, secure, and interoperable value exchange around the world. »

The arrival of Circle on the European stablecoin market is not insignificant. The company, which currently issues the second most capitalized stablecoin on the markethere takes a considerable lead over its future European competitors, who will most likely be forced to undergo more regulation.

At the time of writing these lines, the stablecoin market totals more than $157 billion of market capitalization.

👉 Also read: Bitcoin (BTC) – MicroStrategy denies the margin call and intends to hold its position

Sources: Circle, CoinGecko

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About the Author : Maximilien Prue

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Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make the blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
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