Key Takeaways
- Euro Coin by Circle will be made available from June 30 and is issued under the same full-reserve model of USDC.
- Euro Coin is fully backed by euro-denominated reserves held in the custody of major financial institutions within the U.S. regulatory perimeter.
Global Financial Tech Firm Circle to launch a fully-reserved stablecoin pegged to the Euro from the U.S. called Euro Coin (EUROC). With this launch, the issuer of USD Coin (USDC), plans to drive the frictionless exchange of financial value and bridge the gap between crypto-native and traditional financial services.
Euro Coin will be made available from June 30. Euro Coin which is Circle’s second digital currency will be regulated and issued under the same full-reserve model of that of USDC. According to the official statement, EUROC token, or the Euro Coin, is fully backed by euro-denominated reserves held conservatively in the custody of major financial institutions within the U.S. regulatory perimeter, starting with Silvergate Bank.
According to reports, the Euro Coin will first be launched on the Ethereum blockchain, with support for additional blockchains expected in late 2022. The new stablecoin is an Ethereum ERC-20 standard token that will work broadly with ERC-20 compatible wallets, protocols, and other similar blockchain services.
Binance.US, Bitstamp, Compound, DFX, Fireblocks, FTX, Curve, CYBAVO, Huobi Global, Ledger, Anchorage Digital, MetaMask Institutional, and Uniswap Protocol will be supporting Euro Coin at its launch. Circle had recently acquired CYBAVO to further USDC adoption among enterprises.
Jeremy Allaire, co-founder, and CEO of Circle, commenting on the development, stated that with Euro Coin and USDC , Circle is helping to unlock a new era of inexpensive, secure,fast and interoperable value exchange worldwide.” He further talked about the increasing market demand for a digital currency denominated in euros-the world’s second most traded currency after the U.S. dollar. The BIS’ 2019 Triennial Central Bank Survey reveals that the Euro was on one side of 32% of all currency trades. Most banks also forecast that Euro will strengthen against the U.S. Dollar in the second half of this year.
Circle had recently launched dedicated business accounts for USDC transactions, reinstating the surge in demand for stablecoin payments across enterprises. USDC has grown exponentially over the years. The value proposition for USDC is that it offers better interest rates than traditional cryptocurrencies like Bitcoin and Ethereum.
The global stablecoin market is presently worth over $157.5 billion, and the market cap of USDC stands at $54.2 billion. With the surging popularity for stablecoins, more crypto exchanges are likely to accommodate measures to integrate stablecoins into their payment offerings.
