Circle Launches Euro-Backed Stablecoin EURC on Coinbase\'s Base Blockchain Amid MiCA Implementation

Stablecoin issuer Circle is making significant strides in the digital currency landscape with the introduction of its euro-backed stablecoin, Euro Coin (EURC)

Stablecoin issuer Circle has introduced its euro-backed stablecoin, Euro Coin (EURC), on Coinbase’s layer-2 blockchain, Base.

The Euro Coin is pegged 1:1 to the euro and joins Circle’s well-known stablecoin, USD Coin (USDC), which is pegged to the U.S. dollar. USDC is already the largest stablecoin on Base, with over $3 billion in circulation.

According to Circle, blockchain developers can now access EURC on Base by using its Testnet Faucet on Base’s test network, Sepolia.

The launch of EURC is part of Circle’s broader effort to strengthen its market presence amid the evolving regulatory landscape in Europe.

According to blockchain analytics firm Kaiko, Circle appears to be a major beneficiary of the Markets in Crypto-Assets Regulation (MiCA), which went into effect in March.

The regulation aims to provide a clear legal framework for cryptocurrencies and stablecoins, and has led to a reshuffling of the stablecoin market in Europe.

Kaiko noted that Circle’s USDC has seen a substantial increase in daily trading volumes since MiCA came into effect.

At the same time, major cryptocurrency exchanges like Binance, Bitstamp, Kraken and OKX have started to gradually delist non-compliant stablecoins for their European customers.

This regulatory shift has also sparked speculation about the future of competing stablecoins like Tether in Europe.

In addition to expanding its market reach, Circle’s product diversification aligns with its preparations for an initial public offering (IPO).

Circle initially aimed to go public via a SPAC deal with Concord Acquisition Corp. in July 2021, in a deal that would have valued the firm at $9 billion. However, the SEC declined to approve the filing, and Circle ultimately pursued a new deal with Concord in 2022.

The timing of Circle’s next IPO attempt is unclear, but the company’s recent initiatives are likely to bolster its institutional appeal and position it favorably within the regulatory landscape.

Circle’s move to launch EURC on Base is also expected to attract more developers and users to its stablecoin offerings, increasing its market share and influence within the rapidly growing cryptocurrency space.

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