Circle Unveils Euro-Backed Stablecoin on the Stellar Network

Circle, a prominent stablecoin issuer, has expanded the reach of its euro-backed stablecoin, EURC, by launching it on the Stellar blockchain, according to an announcement made on September 26th. Previously, EURC was exclusively available on the Ethereum and Avalanche networks.

Stablecoins, which are cryptocurrencies backed by fiat currencies, have emerged as a crucial element of the Web3 ecosystem. They empower users to engage in a wide range of financial activities on blockchain networks, including sending payments, borrowing currency, earning interest on holdings, and conducting various fiat-currency-related transactions. Notably, USD Coin (USDC) and Tether (USDT), both backed by the U.S. dollar, currently hold the sixth and seventh positions in terms of market capitalization among cryptocurrencies. Tether’s contract is the third-largest consumer of gas fees on the Ethereum network, as reported by Etherscan.

The majority of stablecoins in existence are anchored to the U.S. dollar, leaving limited options for users who wish to engage in Web3 transactions denominated in their local currencies.

In 2022, Circle, the issuer of USDC, initiated efforts to address this challenge by introducing EUROC, a euro-backed stablecoin built on the Ethereum network. The euro, according to research from the Bank of International Settlements, ranks as the second most traded fiat currency globally and is the official currency in 20 European countries. Circle took a significant step on May 25th when it launched a native version of EUROC on the Avalanche blockchain, rebranding it as “EURC” on September 23rd.

The recent announcement marks a pivotal development, as EURC is now accessible on three different blockchain networks, offering increased options for residents of the eurozone to engage in blockchain-based activities using their native currency.

As part of this expansion, crypto payment provider Ripio has integrated the new version of EURC into its platform. This integration enables Ripio users in Spain to deposit and withdraw EURC using the Stellar network. Sebastian Serrano, CEO and co-founder of Ripio, expressed enthusiasm for the change and its potential to promote crypto adoption as a payment method in Spain:

“In 10 years we’ve been extending our products all over Latin America, and now we’re ready to set our footprint in Europe with this key integration. We are excited that people in Spain now have seamless access to digital assets like EURC and enjoy faster and cheaper transactions around the globe.”

EURC’s introduction on Stellar follows the trend of euro-backed stablecoins like Stasis Euro (EURS) on Cardano and Membrane Finance’s EUROe on Ethereum, illustrating the growing demand for stablecoin options beyond the U.S. dollar.

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