Circle launches euro-pegged stablecoin (EUROC)
Boston-based stablecoin issuer Circle plans to roll out a euro-pegged stablecoin, providing a liquid and stable means of obtaining exposure to the single European currency.
Dubbed ‘Euro Coin (EUROC),’ the new asset is issued under the same full-reserve model as Circle’s USD Coin (USDC), a stablecoin pegged to the US dollar currency with more than $54 billion in circulation.
Created to satisfy euro-biased crypto enthusiasts, Circle believes that the new token can provide protection during periods of extreme volatility in the market while improving the risk and return metrics of crypto-investment portfolios.
Similar to USDC, EUROC is fiat-collateralized with each stablecoin unit is backed by a corresponding unit of Euro. Specifically, Silvergate Bank will act as the initial custodian for Euro Coin to ensure it’s always 100% backed by fiat money held in euro-denominated banking accounts.
Acting as a sort of safe haven where crypto traders can park their assets in volatile markets, EUROC is an Ethereum-based ERC-20 coin, which makes it easy for wallets, exchanges and other smart contracts to interact with the token.
“Euro Coin is a euro-backed stablecoin that’s available 24/7 and moves at internet speed. Together, Euro Coin and USDC unlock new possibilities for multi-currency digital banking and near-instant foreign exchange, where daily volume in traditional markets can top $6.6 trillion globally,” the company said.
With nearly $55 billion worth of tokens in circulation, Circle continues its remarkable trajectory, growing 10x over the course of 2021. Currently available on 8 blockchains, USDC has its ecosystem already integrated into more than 200 exchanges, platforms, wallets, and service providers.
Circle has been expanding the reach of the offering that is primarily focused on retail trading and investing to appeal for B2B partnerships. Currently, the crypto unicorn opens the doors of its stablecoin to businesses with a dedicated account that provides a toolbox of APIs to allow developers to build on top of USDC.
Circle is also in discussions with US regulators to become the fourth crypto-native company to score a federal trust charter through the Office of the Comptroller of the Currency (OCC).
The blockchain firm signaled a willingness to obtain the OCC’s nod back in August 2021. Since then, it has 18 months to execute on its business plan and show the OCC that it can operate safely. At the end of that period, the regulator will evaluate Circle’s operations and determine whether it will sign off on a final charter.
