Summary: Circle announced via a blog post that they are bringing a second stablecoin to the market, the Euro Coin (EUROC), which will be pegged on a 1:1 ratio to the Euro. Their first stablecoin is USD Coin (USDC), which is pegged to the U.S. dollar at the same ratio.  Circle also took to Twitter to ...

Circle announced via a blog post that they are bringing a second stablecoin to the market, the Euro Coin (EUROC), which will be pegged on a 1:1 ratio to the Euro. Their first stablecoin is USD Coin (USDC), which is pegged to the U.S. dollar at the same ratio. 

Circle also took to Twitter to publicize their announcement in a series of five tweets. Here is the first one

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The co-founder and CEO of Circle, Jeremy Allaire, also took to twitter to announce the groundbreaking news saying, “Today, we announced our 2nd major fiat-backed stablecoin, Euro Coin, which went live on Ethereum mainnet, and will be available to mint and redeem on June 30th.” 

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So there you have it, EUROC will be ready to mint and redeem on June 30 on the Ethereum network, with plans to expand their reach to more blockchains in the future. Here is a list of some of the ecosystems that will support EUROC on launch day according to the blog post. 

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MetaMask Institutional, one of the wallets that will support Euro Coin, tweeted their support of the new coin hitting the market saying, “We are thrilled to contribute to the frictionless exchange of financial value and the bridging of crypto-native and traditional organizations.” 

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According to Thursday’s announcement on their blog, EUROC will be fully backed by euro-denominated reserves, which is the same strategy they use for USDC, but in the form of Euros opposed to U.S. dollars. 

In short, the payment firm wanted to make it easier to unlock multi-currency digital banking, where users can easily access USD and EUR. They also noticed a void in the market regarding a Euro-backed coin. 

As of today, a total of $129 million in euro-backed stablecoins are in circulation, opposed to $156 billion in dollar-denominated stablecoins. That means that the market can certainly benefit from a euro-backed stablecoin, that also gives users access to a different currency. 

“The Euro Coin will, therefore, enable seamless transfer of euro liquidity on-chain, effectively increasing the speed of such transactions” the blog post said. 

The VP of policy and regulatory strategy at Circle, Teanna Baker-Taylor, also weighed in on the discussion via twitter. 

“The EU has prioritized strengthening and continued expansion of the internationalization of the €,” her tweet said. “The launch of Euro Coin is a reflection of the strong demand for the € globally.”

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Circle’s announcement follows the ongoing efforts the European Union has made to create a digital Euro that would be backed by the central bank. In fact, on Wednesday the European Central Bank penned a update on the progression of a potential digital Euro. The update explained the goals of the European Central Bank and the release of the digital Euro, talked about privacy and the benefits of having a digital currency. 

The European Central Bank did note that the digital Euro is not meant to replace fiat, but rather work in conjunction with it to produce a more holistic approach to finance. 

“We will design the digital euro in a way that makes it attractive to users, who would like to use it to pay anywhere,” the update said. “Giving legal tender status to the digital euro would make this possible, and it will be decided by you, the co-legislators.”  

Author: Tyler Irvin