Circle to Launch New Stablecoin Backed by Euro Reserves
Coinspeaker
Circle to Launch New Stablecoin Backed by Euro Reserves
Circle Internet Financial, the issuer of USDC has announced that it is launching a new stablecoin backed by Euro reserves called Euro Coin (EUROC). According to the press release, the asset will be launched on the Ethereum blockchain on June 30, it will be fully regulated and issued under the same reserve model as the USDC. Similar to USDC, the Euro Coin would be built on trust, transparency, and security. Jeremy Allaire, co-founder, and CEO of Circle discloses that the move is motivated by the market demand for digital currency denominated in Euro.
“Circle has set industry-leading standards for moving financial value across the internet with USDC. 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 Allaire. “With USDC and Euro Coin, Circle is helping to unlock a new era of fast, inexpensive, secure, and interoperable value exchange worldwide,” he added.
The company also states that the introduction of the stablecoin backed by Euro could be used by businesses to move euro liquidity on-chain. Businesses can also accept and make Euro payments globally, and use it for borrowing, lending, and accessing crypto capital markets for trading. Euro Coin would be in the custody of the leading financial institutions within the regulatory perimeter in the US.
The report also discloses that the token would be compatible with other blockchains later this year. Since it is an Ethereum ERC-20 standard token, Euro Coin would be supported by ERC-20 wallets, protocols, and services. Other industry leaders that would support Euro Coin include “Anchorage Digital, Binance.US, Bitstamp, Compound, Curve, CYBAVO, DFX, Fireblocks, FTX, Huobi Global, Ledger, MetaMask Institutional, and Uniswap Protocol.”
Even though the official launch is weeks away, developers can start integrating Euro Coin smart contracts today according to the statement.
USDC is Circle’s first stablecoin, and it is the leading dollar digital currency and has $54 billion in circulation.
“Together, Euro Coin and USDC aim to bring faster, inexpensive transactions to global commerce and unlock new opportunities for multi-currency digital finance and on-chain foreign exchange (FX), where daily volume in traditional markets can top $6.6 trillion globally,” read the press release.
This comes at a time when Stablecoin has seen a drastic drop in supply, the worst in its history. Crypto investors have, for instance, withdrawn Tether’s USDT savings worth $7 billion since the crash of the Terra ecosystem. This stablecoin was initially said to be backed by the US dollar but was said to be a lie by the New York attorney general. It is now claimed to be 100% backed by Tether’s reserves. Terra, on the other hand, is backed by a complex algorithm.