USDC issuer Circle announces launch of fully-reserved, euro-backed stablecoin

USDC issuer Circle Internet Financial on Thursday announced that it is set to launch a euro-pegged stablecoin called Euro Coin (EUROC) at the end of the month.

The firm released a statement that said Euro Coin will be backed by euro-denominated reserves “held conservatively in the custody of leading financial institutions within the US regulatory perimeter, beginning with Silvergate Bank”.

Jeremy Allaire, Co-founder, and CEO of Circle, said, "Circle has set industry-leading standards for moving financial value across the internet with USDC. There is clear market demand for a digital currency denominated in euros, the world's second most traded currency after the US dollar. With USDC and Euro Coin, Circle is helping to unlock a new era of fast, inexpensive, secure, and interoperable value exchange worldwide."

The statement further said firms can now use EUROC tokens to move euro liquidity on-chain, accept and make euro payments globally that can settle in minutes, and access crypto capital markets for trading, borrowing, and lending.

According to the firm, Euro Coin will initially launch on the Ethereum blockchain and will be backed by Anchorage Digital, Binance.US, Bitstamp, Compound, Curve, CYBAVO, DFX, Fireblocks, FTX, Huobi Global, Ledger, MetaMask Institutional, and Uniswap Protocol.

In the cryptocurrency space, stablecoins are a significant asset of the industry and are backed by multiple assets, like cash, gold, or bonds. They operate like non-bank financial intermediaries and offer services similar to those of traditional commercial banks but outside the ambit of normal banking regulation. Currently, some of the popular stablecoins include Tether’s USDT and Circle’s USDC.