USDC issuer Circle launches Euro Coin, a Euro-backed stablecoin with 100% reserve, 1:1 redemption, to go live on Ethereum on 6/30

The issuer of the stablecoin USDC, Circle, announced yesterday (16th) that they will issue a stablecoin pegged to the Euro called Euro Coin (EUROC). It is 100% backed by Euro reserves and can be redeemed for Euros at a 1:1 ratio at any time.

Circle to Issue Euro Coin

Circle has announced the issuance of Euro Coin with the aim of increasing trading, payments, and establishing opportunities for a Euro stablecoin. As of June 16, 2022, the total circulation of Euro-denominated stablecoins is only $129 million, compared to $156 billion for USD-denominated stablecoins. It is the recognition of this disparity and the lack of liquidity in the Euro stablecoin market that has prompted the launch of Euro Coin.

EUROC will be fully backed by the Euro, with reserve assets custodied by major financial institutions within the regulatory scope of the United States, currently Silvergate Bank.

Euro Coin is expected to launch on Ethereum on 6/30, allowing businesses to easily transfer Euro liquidity on-chain using the EUROC token, enabling global acceptance and transactions in Euros, with settlements completed within minutes, facilitating entry into the crypto capital markets for trading, lending, and more.

As the use of Euro Coin expands, it is anticipated to gradually support more blockchains in the latter half of the year. Many enterprises, exchanges, and protocols have already committed to supporting its use post EUROC launch, including Binance.US, FTX, Curve, Compound, Uniswap, and others.

"There is a clear demand in the market for Euro-denominated digital currencies, as the Euro is the second-largest global trading currency after the US Dollar. With USDC and Euro Coin, Circle is ushering in a new era of global, fast, cheap, secure, and interoperable value exchange," said Circle CEO Jeremy Allaire.