USDC Circle publisher launches Euro Coin (EUROC), a new stablecoin covered by the Euro

USDC publisher Circle has unveiled Euro Coin, a new stablecoin that will be pegged to the euro and backed by euro-denominated reserves held by US-regulated financial institutions.

Circle, the issuer behind the USD Coin (USDC) stablecoin, will launch a new euro-pegged stablecoin (EUROC) later this month.

According to the announcement, the Euro Coin (EUROC) will released under the same full reserve model as the USDC.

The euro-pegged stablecoin will be available to exchanges, institutional traders, businesses and individuals. As with USDC, users can convert euros directly to EUROC and vice versa, it will also be available on exchanges as a trading pair for other cryptocurrencies.

The introduction of this coin comes at a time of significant speculation and a lack of confidence among stablecoin users. These concerns arose after the collapse of the stablecoin TerraUSD (USTC) and concerns about Tether (USDT), whose value temporarily fell below the dollar.

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While the Euro coin will be fully backed by reserves just like USDC, in the case of a Euro-pegged stablecoin, this collateral will be 100% in Euros.

This is the significant difference between EUROC and USDC, which is backed by cash and collateralized by short-term US government bonds.

As a result, Euro reserves will be held in escrow at financial institutions subject to US regulatory oversight for each EUROC token in use. Silvergate Bank will serve as the initial custodian for the EUROC stablecoin. Other administrators will also be Anchorage Digital, CYBAVO, and Fireblocks.

Euro Coin will initially launch as an ERC-20 token on the Ethereum network, with further blockchain support enabled later this year.

EUROC will join a small group of euro-backed stablecoins such as Tether's EURt and Malta-based Stasis Euro (EURS).

Binance.US, MetaMask, a Ledger are among the companies that will support the launch of this stablecoin. Initially, it will only be available through the Silvergate network. However, users will be able to trade and withdraw Euro coin once it is published on exchanges.

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All content in this article is for informational purposes only and does not in any way serve as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.