A euro-pegged stablecoin will be released by Boston-based stablecoin issuer Circle, offering a liquid and reliable way to get exposure to the euro.
EU Coin (EUROC)
The new asset, known as "Euro Coin (EUROC)," is created using the same full-reserve concept as Circle's USD Coin (USDC), a stablecoin tied to the US dollar that has more than $54 billion in circulation.
Circle claims that the new token may provide security during times of significant market volatility while enhancing the risk and return metrics of crypto-investment portfolios. It was developed to appease euro-biased crypto aficionados.
Similar to USDC, EUROC is fiat-collateralized, meaning that each unit of the stablecoin is backed by an equivalent unit of the euro.
In particular, Silvergate Bank will serve as the inaugural custodian for Euro Coin to guarantee that it is always fully backed by fiat money stored in banking accounts denominated in the euro.
EUROC is an ERC-20 coin built on Ethereum, making it simple for wallets, exchanges, and other smart contracts to connect with the token. It serves as a type of safe haven where cryptocurrency traders may keep their funds in erratic markets.
"Euro Coin is a stablecoin backed by the euro that operates at internet speed and is always accessible.
Together, Euro Coin and USDC provide up new avenues for near-instant foreign exchange and multi-currency digital banking, where daily volume in conventional markets may surpass $6.6 trillion worldwide, according to the business.
With approximately $55 billion worth of tokens in circulation, Circle keeps up its impressive growth rate, increasing 10 times in 2021.
The USDC ecosystem is already present in more than 200 exchanges, platforms, wallets, and service providers, and it is now supported by 8 blockchains.
In order to attract B2B collaborations, Circle has been extending the breadth of its service, which is mainly targeted at retail trading and investment.
A dedicated account that offers a toolkit of APIs to enable developers to build on top of USDC is now available from the crypto unicorn, opening the doors of its stablecoin to enterprises.
Circle is also in talks with US authorities to become the fourth cryptocurrency-based business to get a federal trust charter from the Office of the Comptroller of the Currency (OCC).
Back in August 2021, the blockchain company expressed a readiness to get the OCC's approval.
It now has 18 months to carry out its business strategy and demonstrate to the OCC that it can do it securely.
After that time, the regulator will assess Circle's performance and decide whether or not to approve a final charter.