- Euro coin (EUROC) already has support from the top players in the industry, such as DeFi, custodians, and exchanges.
- Like USDC, EUROC is issued under a regulated structure for money transmission.
USDC issuer, Circle, has announced the launch of another fiat-backed stablecoin (Euro Coin, EUROC). Despite the intense selloffs in the crypto market, this EUROC launch is an indication there is still a high demand for crypto.
Important notes about the EUROC
According to Circle’s announcement, trading on EUROC will start this month-end. The EUROC is issued under a regulated framework for money transmission, like the USDC. Also, it is fully backed by the fiat Euro. It has similar security, liquidity, and transparency that Circle provides with the USDC.
For instance, an equal amount of EUROC’s supply circulation is held in reserve with authorized, Euro-dominated banking accounts. Hence, holders can swap it for Euro in a 1:1 ratio. Circle would likely create special business accounts for EUROC similar to what it did with the USDC.
As stated in the announcement, Silvergate bank will act as the EUROC’s initial custodian. The EUROC is always available at any time of the day. A combination of the EUROC and USDC enables faster multi-currency digital banking, including an almost-instant transaction anywhere in the world.
Businesses can access more Euro liquidity through the EUROC stablecoin. They can borrow, trade, or lend this coin. They can also use it for financial settlements. Institutional traders can also take advantage of arbitrage opportunities with the EUROC through crypto exchanges and DeFi.
Individuals can use the EUROC across the innovative Web3 ecosystem. They can use it to pay for goods and services and send money to their loved ones. Circle further announced that the EUROC would be launched on the Ethereum network as an ERC-20 token. Top industry players (Exchanges, DeFi, Custodians, and Wallets) have already pledged their support for the EUROC launch.
Using foreign exchange turnover data, the Euro is the second leading fiat currency after the USD. A Bank for International Settlement (BIS) report stated that 32 percent of all currency trading pairs contain the Euro. The Euro has grown significantly in strength since its launch in 1999. Its 57.7 percent weighting on the US dollar index (DXY) further proves it as a dominant trading pair.
The rising interest in Stablecoins
Stablecoins rose to prominence following the restrictions on cryptos by banks and other financial institutions. Stablecoins ensure that traders, businesses, and individuals can access liquidity immediately if they need it. They have been the solution for many underbanked users.
They have been particularly important in areas where their authorities restrict them from accessing USD. This launch is proof of the rising popularity of stablecoins for various settlement purposes. The market cap of Circle’s USDC is nearly one-third that of the entire stablecoin market cap.
Coinmarketcap data shows that USDC’s market cap is $54.46B, while the market cap for the entire stablecoin market is $170B. Early this month, checkout.com joined the list of businesses to adopt the USDC in paying their merchants.
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