USDC Issuer Circle Is Launching a Stablecoin Pegged to the Euro, EUROC

Vignesh Karunanidhi
USDC Issuer Circle Is Launching a Stablecoin Pegged to the Euro, EUROC
Source: Bitcoin News

USDC issuer, Circle, is launching another stablecoin called the EUROC. It will be entirely reserved and pegged to the euro.

The launch comes amidst the recent speculation and loss of trust among the users of stablecoin due to the fall of UST. The new stablecoin, Euro Coin, will be available to trade from June 30. Similar to USDC, EUROC will be fully backed by reserves, but the euro as its reserve.

This means that for every EUROC token in circulation, an equivalent euro-denominated reserve will be maintained in custody at US-regulated financial institutions. The initial custodian for the stablecoin backed by the euro will be Silvergate Bank.

Source: How-To-Geek

Circle’s EUROC will provide businesses with wider euro liquidity

EUROC will provide entities and businesses with another payment option and also an option for trading, borrowing, and lending. The euro-backed stablecoin will initially be an ERC-20 token launched on the Ethereum blockchain. Additional blockchain support will be added later this year.

EUROC adds itself to a cult of euro-backed stablecoins, including Tether’s EURt and Malta’s Stasis’ EURS. Tether is also the creator of USDT, the largest dollar-pegged coin, with a market worth of more than $70 billion, compared to $54 billion for USDC.

“Euro Coin is a regulated, euro-backed stablecoin issued under the same full-reserve model and built on the same pillars of trust, transparency, and security that have made USDC one of the world’s most trusted digital currencies.”

Source: Financial Times

At the time of writing, it is still unclear as to whether the reserves will be exclusively backed by the euro or other instruments like bonds or commercial papers.

The launch will be supported by Binance US, Anchorage Digital, Bitstamp, FTX, Huobi Global, MetaMask, and Ledger. Initially, it will be available only through the Silvergate network. But once it is listed on exchanges, users can trade and withdraw EUROC.