Key Insights:
- Circle debuts MiCA-compliant EURC on Coinbase’s layer-2 blockchain, Base, enhancing stablecoin adoption.
- EURC and USDC on Base offer regulated, redeemable 1:1 coins for euros and dollars, enabling efficient transactions.
- Circle’s strategic move aligns with Europe’s regulatory shift, positioning it as a stablecoin market leader.
Stablecoin issuer Circle has launched its euro-backed stablecoin, EURC, on Base, Coinbase’s Layer 2 blockchain. This strategic move aims to enhance stablecoin adoption and offer developers and users a compliant euro-backed digital currency.
Circle’s introduction of EURC to Base aligns with the new MiCA regulations, ensuring compliance and trust for a euro equivalent on-chain. This integration joins USDC, the largest stablecoin on Base, with a $3 billion circulation as of July 9. Base, developed by Coinbase, aims to improve Ethereum’s scalability and speed.
Base Welcomes EURC
Circle becomes the first global stablecoin issuer to bring EURC and USDC to Base under the MiCA regulations. The introduction of EURC provides regulated, fully reserved, and redeemable 1:1 coins for euros and dollars. This integration enables institutional on/off-ramps like Circle Mint for qualified businesses and offers retail access to Coinbase’s global network. Use cases include cross-border payments, peer-to-peer payments, and marketplace payouts at minimal costs.
Circle’s Recent Advancements
Recently, Circle has made significant strides, including obtaining an E-money License for USDC and EURC under MiCA regulations. Circle has also urged U.S. authorities to establish seamless stablecoin regulations to foster innovation and protect investors.
Jeremy Allaire, Circle’s co-founder, highlighted the EURC integration on X, emphasizing Circle’s commitment to expanding its market presence amid Europe’s regulatory changes.
Analysts at blockchain analytics firm Kaiko have noted Circle’s potential benefits from MiCA regulations, particularly as major exchanges like Binance and Kraken delist non-compliant stablecoins in Europe. This regulatory shift may position Circle as a dominant player in the market, raising questions about Tether’s future in the region.
Circle’s product expansion aligns with its efforts to strengthen its reputational and financial standing as it prepares for an upcoming IPO. Although the anticipated SPAC deal with Concord Acquisition Corp. did not materialize due to the SEC’s refusal to approve the filing, Circle continues to pursue its public listing ambitions.
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