Circle, the company behind USDC, launches Euro Coin

Starting today on major exchanges, it will be possible to trade Euro Coin (EUROC), the stablecoin pegged 1:1 to the euro and secured with bank deposits of equal value in euros.

Circle officially issues Euro Coin on the market

On its website and subsequently with a tweet, Circle Internet Financial has announced the creation of the Euro Coin (EUROC) stablecoin:

“1 / Euro Coin ($ EUROC) is now available via the Circle account! 

Our newest stablecoin is designed with the same $ USDC full reserve model so it’s always redeemable”.

This is what the tweet reads.

The coin will be exchangeable on major exchanges and is a stablecoin tied 1:1 to the physical euro and secured with bank deposits of equal value in the currency. 

The move materialized following the success of its sister USDC tied in the same 1:1 ratio to the US dollar.

This time the level of security and algorithm behind the currency required unprecedented efforts due to recent events around Terra. 

The timing of the release of this new currency may seem like a gamble to those less familiar with the industry, given that the UST debacle is so recent and has hurt the crypto world so deeply. However, this is not really the case: the level of security is far superior and insiders are calling it unassailable. 

The air of vindication is there and should EUROC be successful it would certainly act as a flywheel for all cryptocurrencies by restoring that trust that is the basis of everything for investors. 

The new instrument will not only be a currency to be traded but rather aspires to be the most widely used exchange currency at least in the old continent for online trading and beyond. 

How Circle’s new stablecoin works

Jeremy Alley, CEO of Circle, explained that companies will be able to “mint” EUROC directly by depositing euros to their profile on Circle and using Silvergate’s Euro SEN network.

The token will be traded on several ecosystems including Binance, Huobi Global, FTX, Bitstamp, Anchorage Digital, Compound, Curve, Uniswap Protocol, Fireblocks, Ledger, and MetaMask Institutional, but work is also underway to expand the offering for the future. 

At such a turbulent time for crypto, but also for markets in general, Circle is keen to lay out specifics

“Euro Coin is a regulated stablecoin, backed by the euro, issued with the same full reserve model and built on the same pillars of trust, transparency and security that have made the USDC one of the most reliable digital currencies in the world.

The launch of Euro Coin aims to further Circle’s successful work in driving the frictionless exchange of financial value and bridging crypto-native and traditional financial services”.

On the website, Circle also emphasizes how the new token is:

“Designed for stability, Euro Coin is 100% backed by euros held in euro-denominated bank accounts so it is always redeemable 1: 1 per euro”.

The demand for euro-linked tokens for both speculative and commercial use had been growing, and Circle pushed for the creation of this stablecoin precisely by filling a need in the market. 

As of mid-June 2022, the total circulation of euro-denominated stablecoins is only 129 million versus 156 billion for dollar-denominated stablecoins, meaning that there is a gap to be filled and that is the aim of Circle’s CEO.