The new euro-assisted stable coin from Circle ahmt the USDC

The new euro-assisted stable coin from Circle ahmt the USDC

Europe says goodbye to negative interest rates-and a euro-supported stable coin is succumbing to being a main benefit.

The issuer of USDC, Circle, used the development in monetary policy and announced a new euro-supported stable coin called Euroc on Thursday, which is modeled on the second largest stable coin bound, which currently has a market capitalization of $ 54.4 billion.

The plan is 100 % secured for Euro Coin by the reserves that are held at the Silvergate Bank regulated in North America, so that they can be redeemed 1-1 against euros. The reserves grow depending on the supply and demand.

"Euro Coin expands the possibilities for payments, on-chain-FX, trade financing, trade and broader applications for markets for digital assets. The launch of the market is symbolic of shifting the cryptoma markets towards an ever greater useful value of the blockchain infrastructure," said Jeremy Allaire, co-founder and CEO of circle. wrote in a tweet.

The euro, which is shared by 19 member states of the European Union, is the second largest currency in the world, just behind the US dollar, but has an insignificant share of stable coins. So far, the currency of the euro zone has lost 11 % of its value compared to the dollar in 2022, and some analysts predict that the two currencies will reach parity this year.

So far, only a few Stablecoins have been linked to the euro, such as EUR from Tether-a sister stable of the largest dollar-supported emission, USDT-or EURS from Stasis. Far from the size of dollar-bound stable coins, EURT has a market capitalization of around $ 216.1 million and the market capitalization of EURs is around $ 130 million. according to Coingecko .

When asked whether the start of the decision of the European Central Bank, to raise the reference interest rate in July and September, a circle spokesman said to block works that the company "builds up in the long term".

"There is a clear need for a credible, solid and regulated stable coin with euro support to play a role in the future of financial system," said the spokesman.

however, On the Euroc- Website Circles, the topic addresses: "How do negative interest rates in the euro zone? Reserves, just like we do with USDC, ”says the company.

The new token will be available for everyone on June 30th. Euroc is introduced as an ERC 20 standard token on the Ethereum blockchain-further blockchains will be added later this year. USDC started in a similar way with Ethereum and has done it since then expanded to eight other chains.