Firm Behind USDC Stablecoin ‘Circle’ Announces Launch of EUROC Stablecoin

• The Euro Coin, or EUROC, will be accessible for trade on June 30.
• The euro-pegged stablecoins first custodian is Silvergate Bank.

Circle Internet Financial (Circle), the company behind USD Coin (USDC), has announced the debut of a fully-reserved stablecoin linked to the euro, an indication to the market that despite recent instability in the sector, demand for crypto foreign exchange services is still robust.

Circle said Thursday that the Euro Coin, or EUROC, will be accessible for trade on June 30. Euro Coin, like USDC, is a regulated stablecoin whose value is entirely supported by fiat currency. For each EUROC token in circulation, an equal amount of euro-denominated reserves will be maintained in custody at US-regulated financial institutions.

Euro-backed Stablecoin-EUROC

The euro-pegged stablecoins first custodian is Silvergate Bank, a crypto-friendly financial institution. The EUROC stablecoin provides companies with more access to euro liquidity, which may be used to make payments, trade, lend, and borrow. The stablecoin will be launched as an ERC-20 standard token on the Ethereum network.

According to the Bank for International Settlements, the euro is the second-largest fiat currency in the world (BIS). The euro is the currency of the 19-nation Eurozone, established in 1999. The US Dollar Index, or DXY, measures the strength of the greenback against a basket of six major currencies and confirms its supremacy as a trading pair.

As a result of banking limitations on digital assets, stablecoins were first proposed as a solution. However, throughout the years, their usefulness has grown dramatically. People who are unbanked or underbanked, including people who live in countries where capital restrictions or bans prohibit access to dollars, may now utilize stablecoins. Circle just offered specialized business accounts for USDC transactions.