Circle, the issuer of USDC, will launch a new stablecoin pegged to the euro, the company announced Thursday.
Dubbed Euro Coin, the token is “100% backed by euros held in euro-denominated banking accounts,” the company claims, “so that it’s always redeemable 1:1 for euros.”
Euro Coin is the company’s second stablecoin. In partnership with US crypto exchange Coinbase Circle launched USD Coin, or USDC, in 2018. USDC was the second-largest stablecoin by market capitalization Thursday, with $54.6B in circulation, according to data from CoinGecko.
Euro Coin (EUROC) will be available to mint and redeem on June 30th, CEO Jeremy Allaire tweeted, and will be listed on the Binance, Bitstamp, FTX and Huobi crypto exchanges.
“Euro Coin expands opportunities for payments, on-chain FX, trade finance, commerce and broader digital asset markets use-cases,” Allaire wrote. “The launch is symbolic of a shift in crypto markets towards greater and greater utility value from blockchain infrastructure.”
To mint the token, businesses can deposit euros into a Circle account using the Silvergate Exchange Network, a settlement solution available to customers of California-based bank Silvergate. The bank will hold Circle’s euro reserves when the token launches.
Euro Coin will also be available on DeFi protocols Compound, Curve, DFX, Uniswap, and will work with any ERC-20 compatible wallet.
Grant Thornton LLP will audit Circle’s euro reserves on a monthly basis, with the first report to be published on the company’s website at the end of August.