Circle introduces Euro-backed stablecoin EURC on base network

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10th July 2024 – (Boston) Circle, a key player in the stablecoin market, has expanded the availability of its euro-backed stablecoin, EURC, to the Base network, an Ethereum layer-2 solution. This development, announced on 9th July, marks the first time EURC is accessible on an Ethereum layer-2 platform, broadening its previous availability on networks such as Avalanche, Ethereum, Solana, and Stellar.

Previously, transactions involving EURC on layer-2 solutions were limited to derivative forms, backed by versions from other networks. With this launch on Base, Circle aims to simplify global e-commerce transactions by facilitating easier and more efficient trade across borders.

The introduction of EURC, alongside the U.S.-dollar-backed USDC on Base, sets a new standard in compliance with the Markets in Crypto Assets (MiCA) regulation. This makes them the first stablecoins from a global issuer on the Base network to adhere to these new regulatory standards.

This move comes amidst news of competitor Tether Euro (EURT) being delisted by crypto exchange Bitstamp for not meeting MiCA compliance, highlighting the increasing scrutiny and regulatory demands within the crypto market.

For users of the Base network, the availability of EURC could significantly enhance their trading efficiency, particularly in Forex transactions. Studies suggest that blockchain-based Forex trading can reduce costs by up to 80%. However, the actual adoption on decentralized exchanges may see some initial delays, as platforms like Aerodrome, Uniswap, and BaseSwap have not yet listed the new coin.

Despite these challenges, platforms such as PancakeSwap have started offering the token through an import feature, albeit with significant user warnings. This cautious approach indicates a growing emphasis on compliance and user safety in the evolving landscape of cryptocurrency trading.