Circle Is Launching A Euro-backed Stablecoin

Key Takeaways

  • Circle has launched Euro Coin (EUROC), a brand new, fully-collateralized stablecoin pegged to the euro.
  • EUROC is ready to start buying and selling on the Ethereum community on Jun. 30, with native assist for extra blockchains anticipated to observe.
  • Thus far, the crypto market has proven comparatively little curiosity in euro-pegged stablecoins.

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The U.S.-based stablecoin supplier Circle is launching a fully-reserved stablecoin pegged to the euro.

Circle Proclaims Euro Coin

One other euro-backed stablecoin is ready to hit the market.

Circle, the issuer behind the second-largest dollar-pegged stablecoin and fourth-largest cryptocurrency available on the market, USDC, announced at present that it will launch a fully-collateralized pegged to the Euro. Per the press release, the brand new token dubbed Euro Coin (EUROC) will start buying and selling as an ERC-20 token on the Ethereum community on Jun. 30, with native assist for extra blockchains anticipated by the top of the yr. 

“There’s clear market demand for a digital forex denominated in euros, the world’s second most traded forex after the U.S. greenback,” mentioned the co-founder and CEO of Circle Jeremy Allaire, including that the firm’s new euro-backed stablecoin would assist “unlock a brand new period of quick, cheap, safe, and interoperable worth change worldwide.”

EUROC will use the identical tried and examined issuance and redemptions mannequin as USDC, Circle’s $54-billion dollar-pegged stablecoin. It can even be totally backed by “euro-denominated reserves” held in “main monetary establishments inside the U.S. regulatory perimeter,” the announcement mentioned. The stablecoin supplier didn’t make clear whether or not EUROC can be solely backed by Euroeuros—euros held in banks outdoors the Eurozone—or embody different extremely liquid yield-bearing monetary devices like industrial paper and bonds.

Nevertheless, Allaire’s claims that there’s an obvious market demand for euro-denominated stablecoins appear at odds with the precise alerts from the market. Crypto’s two different main euro-backed stablecoins, Tether’s EURT and Stasis’ EURS, have a mixed market capitalization of solely round $344 million at present—orders of magnitude decrease than that of the 2 greatest dollar-backed stablecoins. 

Disclosure: On the time of writing, the writer of this piece owned ETH and a number of other different cryptocurrencies.

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