Reserves in euro-denominated currency held by US-regulated financial institutions will underpin the Euro Coin.
Jeremy Allaire, the CEO of Circle, announced that the company has launched a stablecoin pegged to the euro (EUR). According to Allaire, the new EUROC token is now live on the Ethereum network, and it will be available for minting and redemption on June 30th.
The demand for stablecoins continues to rise as businesses seek to improve their operations with on-chain liquidity.
In the same way as USDC, Euro Coin is a fully backed by reserves. Every EUROC token in circulation will have an equivalent reserve in euros held in a United States regulated financial institution.
The initial custodian for the euro-pegged stablecoin was listed as the crypto-friendly Silvergate Bank.
EU Regulators
EU regulators and lawmakers are working to create rules to regulate stablecoin issuers in the union’s 27 member states. As part of the Market in Crypto Assets (MiCA) legislation, which is expected to be finalised by end of June, there are strict rules for stablecoin issuers.
Circle has not yet detailed how a euro-backed stablecoin issued under U.S. standards will be perceived by EU leaders, and how the company anticipates the EU’s pending legislation.
Allaire explains that the new EUROC will be fully regulated and follow the same compliance framework as USDC.
“Like USDC, Euro Coin is being issued under a regulated framework for money transmission, under the same statutes that regulate USDC, with full-reserves in Euro, with the same security, liquidity and transparency that the market has come to expect from Circle,”
Allaire wrote on Thursday.
Supporters
EUROC is currently supported by Binance US, Bitstamp, FTX, and Huobi Global. EUROC is also supported by Compound, Curve, DFX, and Uniswap in the decentralised finance (defi) world.
The new stablecoin is also supported by custodians CYBAVO, Anchorage Digital, and Fireblocks, as well as wallets like Metamask Institutional and Ledger Wallet.
“Euro Coin will be available to institutional customers via a free Circle Account starting June 30, 2022,” Allaire concluded on Thursday. “Developers can begin integrating with the Euro Coin smart contract today, ahead of the official launch.”