Circle launches EUROC stablecoin

Circle has announced the issue of Euro Coin (EUROC), a stablecoin pegged to the euro. It will be available for trading on June 30.

The representatives of the company noted that EUROC is a fully reserved token. The reserves are held in custody at financial institutions regulated by the United States. One of these organizations is Silvergate Bank.

The stablecoin will be initially launched on the Ethereum blockchain as an ERC-20 token. The developers also plan to add more blockchains in the future.

Since EUROC is an ERC-20 standard token, all compatible wallets will interrelate with it. Euro Coin will be listed on such crypto exchanges as Huobi, Bitstamp, Binance US and FTX.

Several decentralized financial systems, such as Fireblocks, Anchorage, Curve and Compound, are also ready to work with EUROC. Circle CEO Jeremy Allaire said that the stablecoin is fully regulated and complies with all regulatory guidelines.

From June 30, Euro Coin will be available to institutional clients through a free Circle account.

Euro-backed tokens are not as popular as dollar-backed ones. However, the market pull for such stablecoins is constantly increasing. According to the results of a research, the euro is in second place in the global trading system. The US dollar holds the first place. The ECB plans to start the development of the digital euro by the end of 2023.

Circle has also issued USD Coin (USDC). It is a digital stable coin pegged to the US dollar. It uses the Proof-of-Stake consensus mechanism, which speeds up transactions and makes it easier to convert fiat currencies to USD.

Last month, the UST stablecoin lost its peg to the US dollar due to the shake-up in the crypto market. The U.S. Securities and Exchange Commission (SEC) has launched an investigation into the UST. Analysts believe that the credibility of stablecoins may decrease significantly amid these events.