TLDR
- Circle has launched its euro-backed stablecoin EURC on the Base network, an Ethereum layer-2 solution.
- EURC and USDC are the first stablecoins on Base to comply with Europe’s Markets in Crypto-Assets (MiCA) regulation.
- The launch of EURC on Base aims to facilitate easier global e-commerce and forex trading on the blockchain.
- Major exchanges have been delisting non-MiCA-compliant stablecoins, potentially benefiting Circle’s EURC.
- EURC is not yet widely listed on decentralized exchanges on Base, indicating early adoption stages.
Circle, a leading stablecoin issuer, has taken a significant step in expanding its services by launching its euro-backed stablecoin, EURC, on the Base network.
Base is an Ethereum layer-2 solution developed by Coinbase. This move marks the first time EURC has become available natively on an Ethereum layer-2 network, joining Circle’s widely used USD Coin (USDC) on the platform.
The introduction of EURC to Base is noteworthy for several reasons. First, it expands the options for users who want to trade or hold euro-pegged digital assets on a fast, low-cost network.
Second, both EURC and USDC on Base are now compliant with the Markets in Crypto-Assets (MiCA) regulation in Europe. This compliance is a crucial factor as the crypto industry faces increasing regulatory scrutiny.
Circle’s decision to launch EURC on Base aligns with a broader trend in the crypto market. As regulations like MiCA come into effect, many exchanges are removing stablecoins that don’t meet the new standards.
1/ 🥁 … $EURC is coming to @base!
We’re excited to bring EURC to Base, its first euro-backed stablecoin, enabling developers to deliver faster and cheaper commerce with a euro-backed digital currency for global users.
Explore what EURC will mean for Base.… pic.twitter.com/6THP9r7KJ1
— Circle (@circle) July 9, 2024
For example, Bitstamp announced it would delist Tether Euro (EURT), citing concerns about MiCA compliance. This situation creates an opportunity for regulated stablecoins like EURC to gain market share.
The expansion of EURC to Base could have significant implications for global e-commerce and forex trading. Circle claims that having EURC on a layer-2 network will make it easier for e-commerce applications to facilitate global trade.
Additionally, a 2023 study suggested that forex trades on blockchain could reduce costs by up to 80% compared to traditional methods.
However, the adoption of EURC on Base is still in its early stages. At the time of the announcement, major decentralized exchanges (DEXs) on Base had not yet listed EURC for trading.
A search for “EURC” on platforms like Aerodrome, Uniswap, and BaseSwap didn’t yield results. PancakeSwap does allow EURC trading through an “import” feature, but users receive a strong warning before proceeding.
For developers interested in working with EURC on Base, Circle has made the token available on the Base Sepolia test network through its Testnet Faucet. This allows for testing and integration before deploying on the main network.
The launch of EURC on Base is part of Circle’s broader strategy to expand its presence in the European market. With USDC already the largest stablecoin on Base, boasting over $3 billion in circulation, the addition of EURC could further strengthen Circle’s position.
Analysts from blockchain firm Kaiko have noted that Circle stands to benefit significantly from the implementation of MiCA regulations.
This move also comes at an interesting time for Circle as a company. The firm has previously expressed interest in going public, attempting a SPAC deal in 2022 that valued the company at $9 billion.
While that deal didn’t materialize due to regulatory hurdles, the expansion of EURC and compliance with MiCA could potentially bolster Circle’s standing for future public offering attempts.
