Digital payments heavyweight Circle Inc. shared the first details of its new product. The Eurocoin (EUROC) stablecoin will unlock new trading, liquidity management and value transfer opportunities for crypto holders around the world.
Circle Launches Eurocoin (EUROC) Stablecoin: The Basics
In the midst of a massive bearish downturn, Circle, an operator of the second largest stablecoin USD Coin (USDC), has unveiled its plans to launch Eurocoin (EUROC), a new asset pegged to the euro. Has been.
What do we know about this initiative so far?
- On June 16, 2022, Circle Inc. announced the issuance of Euro Coin (EUROC), a Euro-pegged cryptocurrency (stablecoin);
- The first Euro Coin (EUROC) will be available as an ERC-20 token on the Ethereum (ETH) blockchain on June 30, 2022;
- Euro Coin (EUROC) asset release is already supported by several world-leading institutions in crypto;
- Despite the euro being the world’s second reserve currency, no euro-pegged stablecoin – even the one issued by Tether – has managed to achieve widespread adoption so far.
In this comprehensive guide, U.Today is going to share the details of its upcoming launch and looks at the potential of the Euro-backed stablecoin in times of market volatility.
What is Circle Inc.?
Circle Inc. is a Massachusetts-based fintech company focused on the development and promotion of peer-to-peer digital payments for retail and businesses. Circle Inc. (or Circle) was founded in October 2013 by Jeremy Allaire and Sean Neville in the first phase of mass cryptocurrency adoption.
Circle is one of the first fintech companies to receive a BitLicense from the New York State Department of Financial Services (NYSDFS) and a virtual currency license from the British watchdog.
Initially, Circle was focused on building solutions for bitcoin (BTC) storage and crypto wallets with built-in buy/sell functions (Circle Pay), but in 2020, all trading instruments were sold to TSE-listed Voyager Digital. Were.
Broadly speaking, Circle is known for its USD Coin (USDC), the second largest stablecoin, the fourth digital asset by capitalization, and the fastest growing USD-pegged asset in Web3. Launched in 2018, it is one of the core elements of the global DeFi infrastructure.
USD Coin (USDC) has a capitalization of over $50 billion; In the last two years, it has grown by more than 40x. The cryptocurrency is used on a variety of platforms, including Ethereum, Solana, Tron, and the Polygon smart contract major.
USD Coin is backed by cash, cash equivalents and commercial paper; It is certified monthly by Grant Thornton Accountants.
What are stable currencies?
Stablecoins (stable assets, stable cryptocurrencies) constitute the class of cryptocurrencies (blockchain-based assets) whose prices are pegged to a particular fiat currency, index or precious metal.
Most stablecoins are pegged to the US dollar as the global world reserve currency. US Dollar Tether (USDT) by Tether Limited is the most popular stablecoin with a capitalization of over $63 billion as of June 2022.
Stablecoins are important for various Web3 economic designs; They are used as the equivalent of fiat currencies to remove the need for CEX, DEX and lending/lending protocols to integrate crypto-to-fiat payouts, which usually implies regulatory issues. Furthermore, traders and holders use stablecoins as reliable and predictable “stores of value” instruments amid bear markets.
A stablecoin’s peg to an underlying cryptocurrency can be guaranteed by either its issuer (for centralized stable coins) or by an ecosystem of smart contracts (decentralized or algorithm-backed stablecoins). USDT, USDC, BUSD, GUSD and TUSD are the most popular centralized stablecoins, while DAI, FEI, FRAX, MIM and USDD are the major decentralized stablecoins. In turn, decentralized stablecoins can be either over- or under-collateralised.
In addition to USD-pegged stablecoins, the Web3 protocol uses the Chinese yuan, Mexican peso or British pound as well as gold- and silver-backed stablecoins.
At the same time, euro-backed stablecoins are not very liquid; None of them have ever been represented in the top 100 cryptos by market capitalization.
Introducing Circle’s Eurocoin (EUROC), a new generation EUR-backed stablecoin
This is why Circle’s decision to issue such a cynical cryptocurrency made headlines in mid-June 2022.
Circle launches Euroq on June 30, 2022
According to an official announcement shared by Circle Inc. on its main website and social media account, the fintech operator is ready to issue Euro Coin (EUROC), a stablecoin pegged 1:1 to the euro.
1/ get ready #eurocoin,
Euro Coin (EUROC) is our newest #fixed currency Which will launch on June 30.
We designed it with the same full-reserve model as #USDC So that it can always be redeemed 1:1 for Euros. See how to get it https://t.co/3PclycHxPk
— circle (@circlepay) 16 June 2022
The new coin will be 100% backed by Euros held in Euro-denominated bank accounts so that the EUROC can be fully redeemed. In general, EUROC will share the technical design of USDC, a major Circle product.
According to the statement of its team, the EUROC asset will be backed by highly reputable Circle partners, including centralized exchanges (Binance.US, Bitstamp, FTX, Huobi Global), decentralized finance (DeFi) protocols (including Compound, Curve, DFX, etc.). , Uniswap Protocol), industry-class custody solutions (Anchorage Digital, CYBAVO, Fireblock) and self-custodial cryptocurrency wallets (Ledger, Metamask Institutional).
The first Euro Coins (EUROC) will be available through Circle accounts. Enthusiasts and entrepreneurs can buy them with a deposit from the crypto-friendly US-based bank Silvergate. Immediately after the initial mining events, EUROC will be sent to exchanges.
Initially, EUROC will be minted on Ethereum (ETH) as an ERC-20 token. However, in the coming months, more mainstream blockchains will have their own versions of the new stablecoin.
One coin, many use cases
Circle highlights that EUROC is a multi-purpose solution that will be integrated into both crypto-focused and forex-oriented trading platforms. As such, the EUROC listing opens up amazing opportunities for all kinds of CEXes.
Institutional traders will be able to use EUROC as their payment for the DeFi segment and Web3 economy. Businesses will be offered to integrate EUROC as a payment method to make their operations more simple and user-friendly. Stablecoin integration will accelerate cash flow for B2B clients.
Last but not least, individuals are poised to have another tool for lightning fast cross-border transfers with zero fees.
Euro-backed stablecoins: EUROC Options
Despite the Euro-pegged stablecoin managing to gain significant traction so far, there are a few projects that attempt to introduce Euro liquidity to Web3 users. Among them, EURT, EURS and agEUR are the most famous.
The largest is Euro Tether (EURT), a “sister product” of the largest stablecoin USDT. It is issued by Tether Limited, and has a market cap of over $218 million.
The EURT is followed by the stasis euro (EURS), the largest multi-series EUR-backed stablecoin. Its $129 million supply is distributed among the Ethereum (ETH), Polygon (MATIC), Algorand (ALGO) and xDai (STAKE) platforms.
agEUR by Angle Protocol is the largest decentralized algorithmically supported Euro-pegged stablecoin. It is over-collateralized and integrated by a number of DFIs, including large firms Curve Finance (CRV), Ave Finance (AAVE) and novel protocols OlympusDAO (OHM) and Frax Finance (FRX). It has a total market capitalization of over $52 million on Ethereum (ETH).
closing thoughts
The Euro Coin (EUROC) will be launched by Circle on June 30, 2022. The token is set to go live on Ethereum (ETH) and more protocols will be added soon.
EUROC will address multiple use cases in the areas of decentralized finance (DeFi), trade, cross-border transfers and digital payments in retail.