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Circle, the issuer of stablecoins, has introduced a version of its euro-backed stablecoin, EURC, on the Stellar network, as announced on September 26. Previously, EURC was exclusively available on the Ethereum and Avalanche networks.
Hello Europe, meet our new companion EURC on #Stellar. Experience the same speed, low cost, and reliability of the Stellar network we all appreciate, now in a fresh currency.
With @circle’s EURC, we are eager to see what real-world utility developers will unlock next. @TeanaTaylor shares it… pic.twitter.com/eQE5sMZI2M— Stellar (@StellarOrg) September 26, 2023
Stablecoins, which are crypto tokens backed by fiat currencies, have become a vital part of the Web3 ecosystem. They enable users to make payments, borrow funds, lend for interest, and engage in other fiat-related activities on blockchain networks. The U.S. dollar-backed USD Coin (USDC) and Tether (USDT) rank as the sixth and seventh largest cryptocurrencies by market capitalization. Tether’s contract is the third-largest consumer of gas fees on Ethereum, as reported by Etherscan.
Nonetheless, the majority of stablecoins are pegged to the U.S. dollar. Users looking to make Web3 payments in their local currency currently face limited options.
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To address this issue, Circle, the issuer of USDC, launched EUROC, a euro-backed stablecoin on Ethereum, in 2022. Research from the Bank of International Settlements indicates that the euro is the second most traded fiat currency globally. It serves as the official currency for 20 nations in Europe. On May 25, Circle released a native version of EUROC on Avalanche, which was subsequently renamed “EURC” on September 23.
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This recent announcement signifies that EURC is now accessible on three blockchain networks, potentially offering Eurozone residents additional avenues to conduct transactions on the blockchain using their local currency.
The announcement also revealed that crypto payment provider Ripio has integrated with the new EURC version, enabling its users in Spain to deposit and withdraw EURC via the Stellar network. Sebastian Serrano, CEO and co-founder of Ripio, stated that this development will promote greater adoption of crypto as a payment method among Spanish users:
“In 10 years we’ve been extending our products all over Latin America and now we’re ready to set our footprint in Europe with this key integration. We are excited that people in Spain now have seamless access to digital assets like EURC and enjoy faster and cheaper transactions around the globe.”
Other examples of euro-backed stablecoins include the Stasis Euro on Cardano and Membrane Finance’s EUROe on Ethereum.
