Circle, the issuer of USD Coin (USDC), has announced the launch of a Euro-pegged stablecoin available starting June 30. The stablecoin, called the Euro Coin (EUROC), will be fully backed by Euro-denominated reserves and be redeemable for the paper currency.
The news has been welcomed by market participants at a time when stablecoins have come under scrutiny in the news cycle and by regulators after the collapse of the TerraUSD algorithmic stablecoin.
Transparent Reserves for EUROC
The coin is aimed at furthering Circle’s mission of “driving the frictionless exchange of financial value and bridging crypto-native and traditional financial services,” the company wrote in a press release.
With an eye toward maximum stability, the Euro Coin’s reserves will be custodied by institutions that fall under the US regulatory umbrella, such as Silvergate Bank, which is based in San Diego.
“Euro Coin is being issued under a regulated framework for money transmission, under the same statutes that regulate USDC, with full reserves in euro,” tweeted Circle CEO and co-founder Jeremy Allaire. He continued that the new tokens will possess the same “security, liquidity, and transparency” as USD Coin.
A Dependable Stablecoin for the EU
The new token joins the ranks of several other euro-backed stablecoins, including Tether’s EURt and Stasis’ EURS.
Begun in 1999, the euro is the second-largest fiat currency based on foreign exchange turnover, per the Bank for International Settlement, making up one side of 32% of trades between currencies. It is the standard currency of the 19-member states that form the Eurozone.
“There is clear market demand for a digital currency denominated in euros, the world’s second most traded currency after the US dollar,” said Allaire. “With USDC and Euro Coin, Circle is helping to unlock a new era of fast, inexpensive, secure, and interoperable value exchange worldwide.”
At present, the European Union is getting ready to roll out its Markets in Crypto Assets (MiCA) regulatory framework, which will include strict stablecoin provisions, especially for issuances by large entities.
EUROC’s Partners and Friends
The Euro Coin is set to begin life as an ERC-20 on the Ethereum blockchain, though it will support other chains at a later date this year. It will be broadly compatible with the various ERC-20 wallets and protocols as well as other blockchain services, per the release.
At launch, Euro Coin will be accessible through Silvergate’s Euro SEN network. After minting and trading begin, it will become possible to trade for the token on a wide range of exchanges, while withdrawals will also be possible into ERC-20 compatible wallets.
From the start, exchanges such as Binance.US, FTX, Huobi Global, and Bitstamp will support EUROC, as will a number of decentralized finance (DeFi) entities, like Uniswap, Compound, and Curve. Custody service providers will include CYBAVO, Fireblocks, Anchorage Digital, and also the wallets MetaMask Institutional and Ledger.