The issuer of USD Coin (USDC) Circle Internet Financial is launching a fully-reserved euro-pegged stablecoin, signaling to the market that demand for cryptocurrency services remains high despite recent industry turmoil..
Euro Coin, or EUROC, will be available for trading on June 30, Circle said Thursday in a statement that was shared with Cointelegraph. Like USDC, Euro Coin is a regulated stablecoin that is fully backed by reserves, in this case, the euro. That means each EUROC token in circulation will have an equivalent euro-denominated reserve held in custody in US-regulated financial institutions..
Silvergate Bank, a crypto-friendly financial institution, is listed as the initial custodian of the euro stablecoin.
The EUROC stablecoin offers companies greater access to liquidity in euros, which can be used for payments, operations, loans and borrowing. The stablecoin will initially launch on the Ethereum blockchain as a standard ERC-20 token..
In terms of foreign exchange turnover, the euro is the second fiat currency in the world, according to the Bank for International Settlements (BIS). The 2019 Triennial Survey of Central Banks found that the euro was on one side of 32% of all forex trading.
Launched in 1999, the euro is the common currency of the 19 members of the eurozone. Its dominance as a trading pair is further reflected in the US Dollar Index, or DXY, where it has a weight of 57.6%.
Stablecoins were initially conceived as a way to give crypto traders access to liquidity due to banking restrictions on digital assets. However, its usefulness has expanded considerably over the years.. Stablecoins now serve unbanked or underbanked populations, as well as users in countries where access to dollars is restricted due to capital controls or sanctions. As Cointelegraph reported, Circle recently launched merchant accounts dedicated to USDC transactions, underscoring the growing demand for stablecoin payments among businesses..
CRYPTO NEWS ALERT!
Crypto remittances must have allure of cash without regulatory constraints — Jeremy Allaire https://t.co/uJbqNDgVdx#WorldEconomicForum #Davos #JeremyAllaire #Remittances #crypto #BTC #ETH #DOGE
— J.ETH (@CryptoNews_21) May 23, 2022
CRYPTO NEWS ALERT!
Cryptocurrency remittances should have the allure of cash without regulatory restrictions – Jeremy Allaire https://t.co/uJbqNDgVdx#WorldEconomicForum #Davos #JeremyAllaire #Remittances #Crypto #BTC #ETH #DOGE
The global stablecoin market is currently worth over $157.5 billion, according to CoinMarketCap. The market cap of USDC is $54.2 billion.
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