Global payments company Circle announced Thursday it is rolling out a new stablecoin dubbed Euro Coin (EUROC) to facilitate on-chain transactions and extend the accessibility and use cases of the Euro currency.
Circle Unveils EURO-Pegged Stablecoin
Circle, the issuer of the United States dollar-pegged stablecoin USDC, said the new euro-backed stablecoin was pegged to the euro at 1:1.
Circle also noted that the new stablecoin is backed by a 100% reserve of the fiat euro currency, which will be held in leading financial institutions, beginning with the U.S.-based Silvergate Bank. This is different from USDC, which is pegged to the USD through cash deposits and U.S. Treasury Bonds.
According to Jeremy Allaire, the CEO of Circle, EURC will come under the same regulatory umbrella as USDC. This entails that Euro Coin reserves will be attested monthly by accounting firm Grant Thornton LLP.
According to the company, EUROC is built on the Ethereum mainnet and will be available to users from June 30. For now, the stablecoin will only be accessible through a Circle account and Silvergate Exchange Network (SEN). However, once it’s fully launched, Euro Coin will be available on crypto exchanges such as FTX, Binance.US, and Huobi Global.
Since EUROC lives on the Ethereum blockchain, it will be compatible with leading DeFi protocols such as Uniswap, Compound, and Curve. Custodian firms such as Anchorage Digital, Fireblocks, and CYBAVO will also integrate the stablecoin. Crypto wallets such as Ledger and MetaMask will equally support the new stablecoin.
While Circle intends to expand the new stablecoin to other blockchain networks later this year, some users are worried about paying ridiculous fees on Ethereum.
Circle Plans to Become a Bank
Meanwhile, in April, Circle announced it was getting close to receiving license approval, enabling it to operate as a U.S.-based bank.
Although the plan to become a licensed bank has been in the works since August 2021, the company is optimistic that the goal will be realized soon. If approved, Circle will be the fourth commercial crypto bank in the country.