Key facts:
Although it will be launched on Ethereum, other networks will be incorporated later.
There are already exchanges that confirmed that they will support eurocoin.
A new player takes the field in the game of stable cryptocurrencies (or stablecoins). It is eurocoin (EUROC), developed by Circle, the same company that issues USD Coin (USDC).
Unlike its better-known peers, the new competitor will not emulate the price of the US dollar, but that of the currency of the European Union, the euro.
Eurocoin, scheduled to launch on Thursday June 30, will initially be an ERC-20 token, that is, that its code can be executed on the Ethereum network. It is likely that, as with other stablecoins, then expand to other networks such as Solana, BNB Chain and Polygon.
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Circle aims to bring euro coin to many of the world’s major blockchains for broad ecosystem support and interoperability.
The aforementioned company assures that “euro coin is backed 100% by euros held in bank accounts, so it can always be exchanged 1:1 for euros”. It thus differs from other stablecoins, for example, USDT —issued by the company Tether— which has several assets, both fiat and cryptocurrencies, that support it.
The bank in which these euros will be stored is, initially, Silvergate Bank, in the United States. They could then add deposits at other financial institutions. Also, these accounts will be audited monthly by Grant Thornton LLP and certifications will be posted on the Circle web cycle.
Circle’s financial statements, which will include the euro coin reserve, are audited annually and filed with the SEC.
Circle, issuing company of euro coin.
Exchanges and cryptocurrency companies are ready to receive eurocoin
According to what Circle reports, several leading entities in the cryptocurrency ecosystem will support eurocoin from the moment it is launched.
the exchanges Binance.US, Bitstamp, FTX and Huobi Global are on the list. Also the DeFi platforms Compound, Curve, DFX and the Uniswap decentralized exchange.
To store eurocoin, any wallet that allows the addition of ERC-20 Ethereum tokens can be used, as well as some custody services, including Anchorage Digital, CYBAVO and Fireblocks.
Other stablecoins that maintain parity with the euro
Eurocoin is not the only stablecoin that maintains parity with the euro. Although he was never very popular, the Tether company has its digital version of the euro, the Tether EURt (EURT). Bitfinex, FTX and Bitstamp are some exchanges where this token can be found.
also exists Stasis Euro (EUROST), developed by the company Stasis and that “inhabits” the networks of Ethereum, Algorand and Matic.
Even the Terra network had its euro-based algorithmic stablecoin: terraEUR (EUT). This currency suffered the same fate as all those of the aforementioned network, and lost much of its value when, as CriptoNoticias reported in May, the mechanisms that maintained parity with the underlying assets failed.