Circle, a stablecoin issuer, has introduced a Stellar-based iteration of its euro-anchored stablecoin, EURC, as revealed in an announcement on September 26. Before this, EURC was exclusively accessible on the Ethereum and Avalanche networks. Stablecoins, which are cryptocurrency tokens backed by fiat currency, have emerged as a crucial element of the Web3 environment. They facilitate users in conducting transactions, borrowing, lending for interest, and executing other fiat-currency-linked activities on blockchain networks. Presently, USD Coin (USDC) and Tether (USDT) are ranked as the sixth and seventh largest cryptocurrencies by market capitalization. Notably, Tether is the third-largest gas fee consumer on Ethereum, as per Etherscan.
With most stablecoins pegged to the U.S. dollar, options are limited for users desiring to dispatch Web3 payments in their local denominations. To address this issue, Circle, in 2022, unveiled EUROC, a stablecoin backed by the euro, on the Ethereum network. Research by the Bank of International Settlements highlights the euro as the world’s second most traded fiat currency, presently serving as the official currency for 20 European countries. On May 25, a native version of EUROC was launched on Avalanche, which was renamed as “EURC” on September 23. The latest development signifies the availability of EURC on three distinct blockchain platforms, potentially expanding options for individuals in the eurozone to undertake blockchain transactions in their local currency.
As per the announcement, the crypto payment provider Ripio has integrated the new version of EURC, enabling its users in Spain to deposit and withdraw EURC utilizing the Stellar network. Sebastian Serrano, CEO and co-founder of Ripio, expressed optimism that this integration would boost the adoption of cryptocurrency as a payment method among Spanish users:
“In a decade, we have expanded our products throughout Latin America, and now we are poised to establish our presence in Europe with this significant integration. The seamless access to digital assets like EURC and the provision for faster and affordable global transactions are exciting prospects for individuals in Spain.”
Other examples of euro-backed stablecoins include the Stasis Euro (EURS) on Cardano and Membrane Finance’s EUROe on Ethereum.