Circle to Launch Euro-Backed Stablecoin on 30 June
- The so called Euro Coin (EUROC) will be fully backed by euro-denominated reserves, with the initial custodian being San Diego-based Silvergate Bank.
- Circle noted that the Grant Thornton LLP will be issuing attestations of EUROC’s reserves on a monthly basis, starting July.
Jeremy Allaire (Circle CEO) speaks on a panel discussion during the Digital Life Design (DLD) Conference at the HVB Forum on January 20, 2014 in Munich, Germany. Hubert Burda Media/Picture Alliance
USDC issuer Circle Internet Financial is planning to add another stablecoin to its line of products by the end of the month, this time pegged to the euro, the company said in a press release on 16 June.
According to the announcement, the so called Euro Coin (EUROC) — that will be fully backed by euro-denominated reserves — will be available for trading starting 30 June. The stablecoin will initially be available on the Ethereum blockchain as an ERC-20 token, but the company has plans to introduce additional blockchain support “later this year”. The co-founder and CEO of Circle, Jeremy Allaire, said in a statement:
“Circle has set industry-leading standards for moving financial value across the internet with USDC. There is clear market demand for a digital currency denominated in euros, the world’s second most traded currency after the U.S. dollar. With USDC and Euro Coin, Circle is helping to unlock a new era of fast, inexpensive, secure and interoperable value exchange worldwide.”
The company has clarified that EUROC will be fully regulated, and that its reserves will be held in the custody of financial institutions that fall “within the U.S. regulatory perimeter”. Circle noted that the initial custodian of the euro-pegged stablecoin will be San Diego-based Silvergate Bank.
The stablecoin will be introduced as an ERC-20 token, and as such will work broadly with ERC-20 compatible wallets, protocols, and blockchain services. At launch, EUROC will be supported by several ecosystems, amongst which are FTX, Bitstamp, BinanceUS, Huobi, Uniswap, Anchorage, Compound, Curve, Fireblocks, and others.
Circle has also stated that Grant Thornton LLP — a global network of independent accounting and consulting firms — will issue monthly attestations of EUROC’s reserves starting July.
- PayPal USD (PYUSD) will be issued by Paxos and the Ethereum blockchain, and is backed by U.S. dollar deposits, short-term Treasuries, and similar cash equivalents.
- The company said the stablecoin can be redeemed for U.S. dollars at all times, and exchanged for any other crypto supported by the platform, including BTC, ETH, BCH, and LTC.
PayPal logo and sign in front of PayPal Holdings headquarters building in North San Jose Innovation District in Silicon Valley, San Jose, California, USA, 17 March, 2019. Michael Vi/Shutterstock
- Binance’s current banking partner for euro deposits and withdrawals via the SEPA network, Paysafe, said it will stop its support for the exchange on 25 September.
- Binance said it will be changing its EUR banking partner, and assured users that no other services on its platform will be affected.
- Despite the events of last week, Circle has been able to clear almost all USDC backlog, and redeemed $3.8 billions USDC between March 13 and March 15.
- The stablecoin issuer also went live with a new transaction banking partner for both domestic and international wires, and expects to bring more capabilities back soon.