- Circle has introduced Euro Coin (EUROC), a new fully collateralized stablecoin pegged to the euro.
- EUROC is scheduled to begin operating on the Ethereum network on June 30, with native support for additional blockchains expected to follow.
- To date, the crypto market has shown relatively little interest in euro-pegged stablecoins.
Share this article
US stablecoin provider Circle is launching a fully-reserved stablecoin pegged to the euro.
Circle announces euro currency
Another euro-backed stablecoin is poised to hit the market.
1/ Get ready to #Euro coin!
Euro Coin (EUROC) is our newest currency #stablecoin which will be released on June 30.
We designed it with the same full booking model as #USDC so that it is always exchangeable 1:1 for euros. See how to get it https://t.co/3PclycHxPk
— Circle (@circlepay) June 16, 2022
Circle, the issuer behind the second largest dollar-pegged stablecoin and the fourth largest cryptocurrency in the market, USDC, Announced today that it would launch a fully collateralized euro. According to the press release, the new token dubbed Euro Coin (EUROC) will begin trading as an ERC-20 token on the Ethereum network on June 30, with native support for additional blockchains expected by the end of the year.
“There is a clear market demand for a digital currency denominated in euros, the second most traded currency in the world after the US dollar,” said Circle co-founder and CEO Jeremy Allaire, adding that the of the company The new euro-backed stablecoin would help “unlock a new era of fast, cheap, secure and interoperable value exchange around the world.”
EUROC will use the same tried and tested issuance and redemption model as USDC, Circle’s $54 billion pegged stablecoin. It will also be fully backed by “euro-denominated reserves” held at “leading financial institutions within the US regulatory perimeter,” the announcement said. The stablecoin provider did not clarify whether EUROC would be backed solely by euroeuros (euros held in banks outside the eurozone) or whether it would include other highly liquid yielding financial instruments such as commercial paper and bonds.
However, Allaire’s claims that there is apparent market demand for euro-denominated stablecoins appear to contradict actual market signals. Crypto’s other two major euro-backed stablecoins, EURT from Tether and EURS from Stasis, they have a combined market capitalization of only around $344 million today, orders of magnitude lower than those of the two largest dollar-backed stablecoins.
Disclosure: At the time of writing, the author of this article owned ETH and several other cryptocurrencies.