dollar coin (USD/USD) issuer Circle Internet Financial is launching a fully-reserved stablecoin pegged to the euro, signaling to the market that demand for cryptocurrency foreign exchange services remains high despite recent industry turmoil.
The Euro coin, or EUROC, will begin trading on June 30, Circle said in a statement shared with Cointelegraph on Thursday. Like USDC, Euro Coin is a regulated stablecoin fully backed by reserves — in this case, the euro. This means that for every EUROC token in circulation, an equal amount of euro-denominated reserves will be held in a U.S.-regulated financial institution.
Silvergate Bank, a crypto-friendly financial institutionlisted as the initial custodian of the euro-pegged stablecoin.
The EUROC stablecoin gives businesses wider access to euro liquidity for payments, transactions, and lending. Stablecoins will initially be launched on the Ethereum blockchain as ERC-20 standard tokens.
According to the Bank for International Settlements (BIS), the euro is the second-largest fiat currency in the world in terms of foreign exchange trading volume.BIS 2019 Triennial Central Bank Survey established The euro accounts for 32% of all currency transactions.
Introduced in 1999, the euro is the common currency of the 19 member states of the euro area. Its dominance as a trading pair is further reflected in the US Dollar Index (DXY), which holds a 57.6% weight.
Stablecoins were initially conceived as a way for crypto traders to gain liquidity due to bank restrictions on digital assets. However, their utility has expanded significantly over the years.Stablecoins now serve Unbanked and Underbanked Populations, and users in countries where access to U.S. dollars is restricted due to capital controls or sanctions.As Cointelegraph reported, Circle recently launched Dedicated business account for USDC tradingunderscoring the growing demand for stablecoin payments from businesses.
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According to CoinMarketCap, the global stablecoin market is currently worth over $157.5 billion. USDC has a market cap of $54.2 billion.