USDC creator to launch Euro-backed stablecoin in the US

What

Circle Internet Financial, the issuer of the USD Coin (USDC) dollar-pegged stablecoin will launch a new token backed by the euro

Why

Clear market demand for a digital currency denominated in euros has been cited as a key reason for the move

What next

The Euro Coin (EUROC) will be backed by euro-denominated reserves held by US-regulated financial institutions and is set to launch on the Ethereum blockchain on June 30 as an ERC-20 standard token

The story

USDC issuer Circle Internet Financial is preparing to introduce a new token backed by the euro by the end of June.

The Euro Coin (EUROC), will be backed by euro-denominated reserves held by US-regulated financial institutions such as San Diego-based Silvergate Bank, the company said.

“Euro Coin is a regulated, euro-backed stablecoin issued under the same full-reserve model and built on the same pillars of trust, transparency, and security that have made USDC one of the world’s most trusted digital currencies,” a company statement said.

Meanwhile, regulators and lawmakers in the European Union (EU) are in the process of establishing rules for stablecoin issuers looking to serve EU customers. The Markets in Crypto Assets (MiCA) legislation has been estimated to launch by end of June.

“There is clear market demand for a digital currency denominated in euros, the world’s second most traded currency after the U.S. dollar,” Jeremy Allaire, Circle founder and CEO, said in a press statement.

Euro Coin will launch on the Ethereum blockchain on June 30 as an ERC-20 standard token. Support for additional blockchains is expected later in the year.

To read more about stablecoins, visit our learning resource here.