Key takeaways:
- Fintech company Circle has announced Euro Coin (EUROC), a new fiat-pegged stablecoin
- EUROC will be fully backed by euro cash reserves and redeemable for euro at a 1:1 ratio
- Circle is the issuer of USD Coin (USDC), which is the second largest stable digital currency in the industry
Euro Coin (EUROC) to follow the same reserve model as USD Coin (USDC)
USD Coin (USDC) issuer Circle has announced it will be launching a new stablecoin product, Euro Coin (EUROC). As the name suggests, ERUOC will be pegged to the value of EUR and redeemable at a 1:1 ratio at all times. The stablecoin will be fully backed by euro cash reserves.
Initially, EUROC will be available via the Circle Account through Silvergate’s Euro SEN network which launched in mid-February. Silvergate is one of the leading financial institutions facilitating both traditional finance and crypto transactions. Earlier this year, the bank made headlines when it purchased blockchain payment network assets from the Diem organization, which previously led the development of Meta’s (formerly Facebook) Diem stablecoin project.
According to Circle, EUROC will be launching on June 30th on the Ethereum blockchain. The stablecoin is backed by some of the leading companies in the crypto space, including Binance.US, Bitstamp, FTX, Uniswap, MetaMask, and Ledger.
The news of Circle launching a new stablecoin comes roughly three weeks after the fintech company’s main competitor, Tether, launched a Mexican Peso-pegged stablecoin called Tether MXNt (MXNT).
According to data from The Block, the total market capitalization of all stablecoins in circulation currently stands at approximately $153 billion. Tether controls the lion’s share of the stablecoin sector, with $77 billion worth of USDT in circulation. Meanwhile, USDC boasts more than a $45 billion market cap. The two biggest fiat-pegged stablecoins account for 80% of the entire sector.
