Connect with us

Circle

Circle, The Company Behind The USDC Stablecoin, Announces Euro Coin

Published

on

Circle, The Company Behind The USDC Stablecoin, Announces Euro Coin

Does the world need Euro Coin? There are already stablecoins pegged to the Euro in the market. The difference here, however, is Circle. As the issuer of the well-regarded USDC, they have the reputation, the know-how, and the clientele to make this happen. Even with all of those advantages, it’s the market that will decide if the world needs Euro Coin.

Related Reading | Crypto Investors Find Safety In Stablecoins, Bitcoin, Ditch Altcoins En Masse

On the project’s page, they describe it as, “Euro Coin (EUROC) is issued by Circle under the same full-reserve model as USD Coin (USDC), a trusted dollar digital currency with more than $54 billion in circulation.” At first, Euro Coin will exist on the Ethereum blockchain, it’ll be a traditional ERC-20 already compatible with everything out there.

1/ CIRCLE LAUNCHES EURO COIN: 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. https://t.co/vPZkItL0Fu

— Jeremy Allaire (@jerallaire) June 16, 2022

Advertisement

The Euro Coin will be “100% backed by euros held in euro-denominated banking accounts so that it’s always redeemable 1:1 for euros”. The difference with regular euros is that EUROC will be “available 24/7 and moves at internet speed”. The new stablecoin debuts on June 30th. “Businesses can mint Euro Coin straight from the source by depositing euros into their Circle Account using Silvergate’s Euro SEN network.”

What’s Euro Coin ’s Main Use?

In a recent tweet, Circle CEO Jeremy Allaire summarized the product’s value proposition. “Like USDC, Euro Coin is being issued under a regulated framework for money transmission, under the same statutes that regulate USDC, with full-reserves in Euro, with the same security, liquidity and transparency that the market has come to expect from Circle”. Does it solve a problem, though? Two words: foreign exchange.

4/ Euro Coin expands opportunities for payments, on-chain FX, trade finance, commerce and broader digital asset markets use-cases. The launch is symbolic of a shift in crypto markets towards greater and greater utility value from blockchain infrastructure.

— Jeremy Allaire (@jerallaire) June 16, 2022

Back to the project’s page, Circle promises “multi-currency digital banking and near-instant foreign exchange, where daily volume in traditional markets can top $6.6 trillion globally.” As we read a while ago in the Bitcoinist Book Club, “The Bitcoin Standard” explains how that huge market emerges just to solve “the age-old problem of lack of coincidence of wants.” As explained by Saifedean Ammous, the process goes like this:

“The seller does not want the currency held by the buyer, and so the buyer must purchase another currency first, and incur conversion costs. As advances in transportation and telecommunications continue to increase global economic integration, the cost of these inefficiencies just keeps getting bigger. The market for foreign exchange, at $5 trillion of daily volume, exists purely as a result of this inefficiency of the absence of a single global homogeneous international currency.”

As Circle’s numbers show, since the book’s publication the foreign exchange market kept growing. And since we’re far from living in a bitcoin standard, with a “single global homogeneous international currency,” the foreign exchange will keep growing. And that’s where Euro Coin comes in. 

Advertisement

ETH price chart for 06/16/2022 on Kraken | Source: ETH/USD on TradingView.com

The New Stablecoin’s Characteristics

  • Where will the money that backs the operation be? “Circle will hold euros in euro-denominated banking accounts at leading financial institutions, beginning with Silvergate Bank in the U.S.”

Related Reading | Crypto Company Circle Seeks To Become Global Digital Currency Bank

  • “Businesses can use a free Circle Account to mint and redeem Euro Coin at no additional cost”. Circle can afford to treat businesses like that because they’re that big and established. 
  • Circle will audit the Euro Coin. “Grant Thornton LLP will be issuing monthly attestations of Euro Coin reserves, starting with an attestation for the month of July 2022. Circle will publish the attestation reports on this webpage, with July’s report being available to view online by the end of August 2022.”

It’s also worth noting that the main criticism the project received was because they choose Ethereum to start with. However, Circle promises the Euro Coin in other blockchains soon. And considering that USDC exists in every smart contract-enabled blockchain under the sun, there’s no reason not to believe them.

Featured Image: Screenshot from Circle's website  | Charts by TradingView

$70 billion

The Number Of Tethers In Circulation Dropped By Over 12 Billion In 2 Months, USDC Grew By 9%

Published

on

The Number Of Tethers In Circulation Dropped By Over 12 Billion In 2 Months, USDC Grew By 9%

During the last two months, the stablecoin tether has been one of the most traded crypto assets swapped against a myriad of digital currencies. 66 days ago on April 11, 2022, tether’s market valuation was over $82 billion with 82,694,361,442 tethers in circulation. Since then, more than 12 billion tethers have been removed from circulation amid the Terra blockchain implosion, the recent crypto market carnage, and rumors circulating around Celsius and Three Arrows Capital (3AC).

More Than 12 Billion Tethers Leave the Crypto Economy Since April 11

According to market data, the number of tether (USDT) in circulation has dwindled down from over 82 billion to today’s 70 billion. Bitcoin.com News reported on the swelling stablecoin market valuation of all the fiat-pegged tokens in existence as the stablecoin economy neared $200 billion, on April 11.

On that day, there were approximately 82,694,361,442 tethers in circulation after the dollar-pegged crypto saw a 3% increase in growth the month prior. Since then, 15.30% has been removed from circulation as the circulating supply on June 16, 2022, is 70,038,816,028 USDT, according to coingecko.com metrics.

Advertisement
Tether (USDT) market capitalization over the past 90 days.

People have been noticing the number of tethers in circulation dropping, as crypto advocates have been discussing the subject on social media. Much of the USDT in circulation has been removed since the terrausd (UST) de-pegging incident, as there were 82.79 billion tethers in circulation on May 12, 2022.

Two days later on May 14, the number or tethers in circulation was down 7.25% to 76.70 billion USDT, according to coingecko.com stats saved on archive.org. During the course of 33 days, another 8.73% has been removed from circulation since May 14.

USDC’s Market Cap Grows Over the Last 2 Months, Tether Commands Lion’s Share of Global Trade Volume

Meanwhile, tether’s competitor usd coin (USDC) has grown during the last two months. On April 16, 2022, the total amount of USDC in circulation was approximately 50,090,822,252 tokens according to coingecko.com metrics recorded on archive.org. Since then, the number of USDC has grown to 54,582,713,063, or 8.96% larger, during the past two months.

While tether millionaire addresses drop, usd coin millionaire addresses increased surpassing tether’s lead.

During the terrausd (UST) fiasco, the number of USDC slid to 49,122,170,211 on May 12. The USDC in circulation then grew from the 49.12 billion region to 53,804,005,416 by June 10. USDC saw a slight issuance increase since then. Circle also announced the launch of euro coin (EUROC) backed 1:1 by the euro this month.

Advertisement

Data recorded on June 16 shows that USDT commands the lion’s share of the global cryptocurrency trade volume, as it accounts for $51.41 billion of the $96.31 billion in volume on Thursday. That means 53.37% of all the crypto trades on Thursday have been paired with USDT.

The amount of USDC traded on June 16 pales in comparison, as the stablecoin recorded $5.93 billion or 6.15% of the global crypto trade volume during the last 24 hours. Cryptocompare data recorded on June 16 shows USDT trades accounted for 56% of bitcoin’s (BTC) trade volume. While USDC accounted for 2.77% of all BTC trades on Thursday.

Tags in this story

$70 billion, 82 billion, Bitcoin, BTC, Circle, Dollars, euro coin, EUROC, Global Trade Volume, redemption, Stablecoin, stablecoin crypto, Stablecoin Supply, Stablecoin Tokens, Tether, Tether (USDT), Tether in circulation, tethers, usd coin, USDT, UST de-pegging incident

What do you think about the number of tethers in circulation declining? Let us know what you think about this subject in the comments section below.

Advertisement
Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Advertisement

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Continue Reading

Altcoins

Circle Launches Second Major Stablecoin Backed 1:1 By The Euro

Published

on

Circle Launches Second Major Stablecoin Backed 1:1 By The Euro

On Thursday, Circle’s CEO Jeremy Allaire announced that the company has launched a new stablecoin pegged to the value of the euro (EUR). Allaire said that the new EUROC token is now live on the Ethereum network and will be “available to mint and redeem on June 30th.”

Circle Launches EUROC

Circle has announced the launch of the company’s second major fiat-pegged crypto asset called euro coin (EUROC). The announcement stemmed from Circle’s CEO Jeremy Allaire on Thursday who explained that EUROC already has “broad industry support.” Circle also follows the company Tether Limited, which introduced a euro stablecoin called EURT in August 2016. There’s currently €195.99 million worth of Tether’s EURT at the time of writing and roughly $7 million in global trade volume during the past 24 hours. In terms of the stablecoin’s fiat backing, Circle’s new EUROC web portal states:

Designed for stability, Euro Coin is 100% backed by euros held in euro-denominated banking accounts so that it’s always redeemable 1:1 for euros.

Allaire details that the new EUROC is fully regulated and will follow the same compliance framework as USDC. “Like USDC, Euro Coin is being issued under a regulated framework for money transmission, under the same statutes that regulate USDC, with full-reserves in Euro, with the same security, liquidity and transparency that the market has come to expect from Circle,” Allaire wrote on Thursday.

Advertisement

EUROC Already Has Support From Exchanges, Wallets, Custodians, and Defi Apps

The Circle CEO believes a euro-based stablecoin will expand payment opportunities and onchain FX. It will bolster trade finance (tradefi) and commerce as well, Allaire explained in his tweet about the project. EUROC will be accessible to individuals, exchanges, institutional traders, and businesses. Currently, EUROC is supported by Binance US, Bitstamp, FTX, and Huobi Global. In the decentralized finance (defi) world EUROC is also supported by Compound, Curve, DFX, and Uniswap.

Additionally, custodians like Anchorage Digital, CYBAVO, and Fireblocks support the new stablecoin alongside wallets like Metamask Institutional and Ledger Wallet. “Euro Coin will be available to institutional customers via a free Circle Account starting June 30, 2022,” Allaire concluded on Thursday. “Developers can begin integrating with the Euro Coin smart contract today, ahead of the official launch.”

Tags in this story

Altcoins, Circle, Circle CEO, Ethereum, euro coin, EUROC, EUROC Launch, EURT, Issued, Jeremy Allaire, launch, Mintable, Redeemable, Stablecoin, Stablecoins, Tether, Tether’s EURT, USDC

What do you think about the new euro coin (EUROC) stablecoin launched by Circle? Let us know what you think about this subject in the comments section below.

Advertisement
Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons, Illustration Contributor: Hoowy

Advertisement

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Continue Reading

beta test

Checkout.com Reveals Merchants Can Accept And Make Payments In USDC

Published

on

Checkout.com Reveals Merchants Can Accept And Make Payments In USDC

On Tuesday, the financial technology company Checkout.com announced that it will allow merchant settlements using the stablecoin USDC via a partnership with the crypto firm Fireblocks. Checkout.com further detailed that in a beta test with select clients, the company settled $300 million in transaction volume leveraging the USDC stablecoin.

Checkout.com Leverages the Stablecoin USDC

Checkout.com has announced it will be utilizing USDC for merchant settlements. The company, founded in 2009 by Guillaume Pousaz, said it will allow businesses to make payments in, and accept, Circle’s stablecoin usd coin (USDC). Checkout.com’s new stablecoin settlement service is through a partnership with the firm Fireblocks, a crypto custody service provider that just launched an institutional suite of Web3 services.

On the same day as the Checkout.com announcement, Coins.ph partnered with Fireblocks and revealed the fiat and crypto wallet service provider will integrate Fireblocks’ custody management into Coins.ph’s platform. Ran Goldi, Fireblocks’ vice president of payments, explained that Checkout.com’s new USDC payment service will allow much faster settlement times and during non-banking hours.

Advertisement

“Traditionally, merchant payouts are limited to 9-5 on weekdays excluding public holidays and are further delayed through batch processing over several business days,” Goldi said in a statement on Tuesday. “Checkout.com’s weekend settlement means that merchants are no longer restricted by arbitrary settlement times.”

The announcement further notes that select Checkout.com customers already tested the new USDC feature in a beta version of the service. “During the beta, Checkout.com successfully tested, refined and optimized ways for customers’ online fiat transactions to be paid to merchants through USDC,” the company’s announcement details. Jess Houlgrave, the head of crypto strategy at Checkout.com, believes stablecoins offer a variety of benefits.

“Stablecoins started as a fiat-denominated asset used by crypto traders to easily move in and out of more volatile crypto assets, but we believe they will also play a fundamental role in improving the underlying payment landscape,” Houlgrave explained. “The fact that we’re the first full-stack payments provider to successfully pilot an end-to-end solution with weekend merchant-side settlement capability is testament to our commitment to crypto.”

Tags in this story

beta test, checkout.com, Checkout.com crypto, Circle, Coins.ph, crypto custody service provider, Fireblocks, Fireblocks Services, institutional Web3 services, Jess Houlgrave, Ran Goldi, select customers, Stablecoin payments, Stablecoins, usd coin, USDC, USDC test, weekend settlement

What do you think about Checkout.com using USDC for settlement services? Let us know what you think about this subject in the comments section below.

Advertisement

Jamie Redman

Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

Advertisement

Advertisement

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

Continue Reading

Trending

Get our daily News updatesSignup to get instant updates straight to your email