Regulation
Circle Launches Euro-Pegged Stablecoin EURC on Coinbase Blockchain
Stablecoin issuer Circle is expanding its reach with the launch of its MiCA-compliant, euro-backed stablecoin on the layer 2 chain, Base.
Circle is bringing its regulated stablecoin, pegged 1:1 to the euro (EURC), to Monetary basethe layer 2 network called Base as part of its strategy to consolidate its market presence in the context of the implementation of the Regulation on cryptocurrency markets in Europe (Not) regulations.
In an X thread on Tuesday, the stablecoin issuer noted that Euro Coin (EURC) joins Circle’s other USD-pegged stablecoin, USD Coin (USDC), which has already become the largest stablecoin on Base with over $3 billion in circulation. Circle added that blockchain developers can access EURC on Base using its Testnet Faucet on Base’s testnet called Sepolia.
We are excited to bring EURC to Base, its first euro-backed stablecoin, enabling developers to offer faster and cheaper trading with a euro-backed digital currency to users around the world.
Find out what EURC will mean for Base. photo.twitter.com/6THP9r7KJ1
— Circle (@circle) July 9, 2024
Circle’s latest move could be seen as a strategic effort to maximize exposure amid regulatory change in Europe. Analysts at blockchain analytics firm Kaiko have previously noted that Circle appears to be the primary beneficiary of the MiCA regulations, which specifically target the cryptocurrency and stablecoin market.
After the implementation of MiCA, Circle’s USDC saw the most significant increases in daily trading volumes. Meanwhile, major cryptocurrency exchanges such as Binance, Bitstamp, Kraken, and OKX began delisting non-compliant stablecoins for their European customers, paving the way for more regulated entities such as Circle to dominate the market. This also prompted many to to hypothesize The future of Tether in Europe.
In addition to market dominance, Circle’s product expansion aligns with its efforts to strengthen its reputation and financial position as it prepares for an upcoming initial public offering (IPO). Initially aiming for a July 2021 stock market listing, the Boston-based company later entered into a new deal with Concord Acquisition Corp. in 2022, valuing it at $9 billion.
However, the SPAC deal envisaged failed to materialize due to the U.S. Securities and Exchange Commission’s (SEC) refusal to approve the filing. The exact timing of Circle’s next IPO attempt remains unclear.