Bloomberg News reports that Circle Internet Financial Ltd is introducing a euro-based version of the popular USDC stablecoin. It has been gaining much traction after Tether. The closest rival has come under a lot of scrutinies.
EUROC or Euro Coin will be made available to the institutional customers from June 30th as a regulated, euro-backed stable coin, which will be issued under USDC as the same full reserve model, revealed by Circle on Thursday in a statement.
Tether lost its peg to the dollar last month for a brief period, causing reverberations across the stablecoin ecosystem, with the investors seeking haven in other crypto-assets like the USDC, aiming to maintain a one-to-one peg with the dollar.
According to the Citigroup strategists, when it comes to reserve holdings, USDC is a lot more transparent in comparison to USDT, as stated in a note while talking about the phenomenon. The company had disclosed last year that a few of the assets that were backing USDC include the commercial paper and the corporate bonds. However, they were later moved to the cash and Treasuries.
Similarly, the Euro Coin will be backed entirely by the euro-denominated reserves and held in the custody of the financial institutions within United States perimeter regulations, starting with Silvergate Bank, as stated by Circle.
Bloomberg News reports that the market value of USDC has surged to approximately $55 billion from the $42 billion it was at year-end. Meanwhile, the redemptions in Tether have witnessed its weight drop to around $70 billion from $78 billion, as per CoinGecko’s pricing.
The USDC’s growth has doubled the value of the planned merger of Circle with Concord Acquisition Corp, a particular purpose acquisition company, to $9 billion. However, the deal’s closing date has been deferred many times amidst heightened SPAC mergers scrutiny.
Bloomberg News reports that the debut of Euro Coin will take place on Ethereum blockchain, Binance.US, Anchorage Digital, BitGo, Fireblocks, CYBAVO, FTX, Bitstamp, Ledger, and Huobi Global, which will be supporting Euro Coin during the launch revealed Circle.
Like USDC, Circle said that it would like to get EUROC on the other blockchain in the future in addition to Ethereum, stated Dante Disparte, the chief strategy officer of Circle and head of global policy, in an interview. Governance proposals are expected to be submitted for inclusion on leading community-owned DeFi or decentralized finance protocols that include DFX, Uniswap, Curve, and Compound.
Disparte also said that work is still to be done, but it is being anticipated over time. This effort will be supported by Europeans speaking about innovation.
