TLDR
- Circle has launched its euro-backed stablecoin EURC on the Base network, an Ethereum layer-2 solution
- This is the first time EURC is available natively on an Ethereum layer-2 network
- EURC and USDC on Base are claimed to be the first MiCA-compliant stablecoins from a global issuer on the network
- The move aims to facilitate easier global e-commerce and forex trading on blockchain
- EURC is not yet widely listed on major decentralized exchanges on Base
Circle, the company behind the popular USD Coin (USDC) stablecoin, has taken a step in expanding its euro-backed stablecoin, EURC, by launching it on Base, an Ethereum layer-2 network developed by Coinbase.
This move marks a pivotal moment in the stablecoin landscape, potentially reshaping how digital euros are used in blockchain-based transactions and global e-commerce.
Announced on July 9, the launch of EURC on Base represents the first time Circle’s euro-backed stablecoin is available natively on an Ethereum layer-2 solution.
Previously, EURC was only natively issued on networks such as Avalanche, Ethereum, Solana, and Stellar. Layer-2 networks could only use derivative forms of EURC backed by versions existing on other chains.
EURC, issued by Circle, brings the trust and compliance needed for a euro equivalent on-chain.
We launched $USDC on Base last year, and is already the largest stablecoin on Base with more than $3 billion in circulation as of July 9th.
— Circle (@circle) July 9, 2024
One of the most notable aspects of this launch is Circle’s claim that both EURC and USDC on Base are “the first stablecoins on Base from a global issuer to be compliant with the new Markets in Crypto-Assets (MiCA) regulation.”
This compliance is crucial as regulatory scrutiny of cryptocurrencies and stablecoins intensifies globally. MiCA, a comprehensive regulatory framework for crypto assets in the European Union, aims to provide clarity and protection for investors while fostering innovation in the sector.
The introduction of EURC to Base is expected to bring several benefits to users and developers. Circle emphasizes that this move will make it easier for e-commerce applications to facilitate global trade.
By providing a stable, euro-backed digital asset on a fast and cost-effective layer-2 network, Circle aims to reduce friction in cross-border transactions and enable near-instant settlements for international remittances, peer-to-peer payments, and marketplace payouts.
The availability of both EURC and USDC on Base opens up new possibilities for forex trading on blockchain networks. A 2023 study suggested that forex trades performed on a blockchain could reduce costs by up to 80% compared to traditional methods.
With euro and dollar-backed stablecoins now available on the same layer-2 network, users may find it easier and more cost-effective to exchange between these currencies.
At the time of the announcement, major decentralized exchanges (DEXs) on Base, including Aerodrome, Uniswap, and BaseSwap, had not yet listed EURC. PancakeSwap does allow the token to be traded through its “import” feature, but only after displaying a strongly worded warning to users.
Circle provided the official token address for EURC on Base mainnet (0x60a3e35cc302bfa44cb288bc5a4f316fdb1adb42) to help users and platforms verify the authenticity of the token. This step is crucial in preventing potential scams or confusion with unofficial versions of the stablecoin.
The launch of EURC on Base is part of Circle’s broader strategy to expand its stablecoin offerings and maintain a leading position in the evolving digital currency landscape. Jeremy Allaire, Circle’s co-founder, highlighted the integration on social media, underscoring its importance to the company’s vision.
This move also comes at a time when Circle is making significant strides in regulatory compliance. The company recently obtained an E-money License for USDC and EURC under MiCA regulations, positioning itself as a pioneer in adhering to emerging crypto regulations.
Circle has been vocal in calling for clear stablecoin regulations in the United States to foster innovation while ensuring investor protection.
