Circle debuts EURC stablecoin on Solana
The new Euro-backed stablecoin is now available on Solana.
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Stablecoin issuer Circle has announced the launch of EURC, a euro-backed stablecoin, on the Solana blockchain. Circle shared its announcement through a post on X earlier today, adding that the stablecoin is expected to expand to more blockchain networks in 2024.
The time is now for 24/7 on-chain FX with global, instant settlement. Learn more 👇 https://t.co/hrCirklYGY
— Circle (@circle) December 18, 2023
EURC is backed by traditional assets such as a combination of European government debt and cash reserves.
The firm claims that its institutional-grade on and off-ramps processed through Circle Mint enable businesses to seamlessly convert EUR (fiat) to and from EURC (stablecoin). Major DeFi protocols on Solana are set to integrate EURC at launch, including Jupiter Exchange, Meteora, Orca, Raydium, and Phoenix. These platforms aim to unlock 24/7 instant FX, trading, borrowing, and lending with EURC for their users.
Circle’s decision to launch EURC on Solana is strategic, given how the Solana blockchain offers high speeds and low transaction fees, making it an ideal platform for stablecoins. The EURC launch on Solana extends the stablecoin’s availability on other blockchains such as Avalanche, Ethereum, and Stellar.
Circle has also disclosed that it is undergoing initiatives to achieve conformity with the Markets in Crypto Assets (MiCA) framework overseen by the European Securities and Markets Authority (ESMA).
Stablecoins have gained popularity in recent years due to their ability to maintain a stable value while still offering the benefits of crypto, such as fast transactions and borderless transfers.
According to a report by Bernstein Research, stablecoins could potentially experience tremendous growth, with estimates of reaching a market size of nearly $3 trillion by 2028.
Stablecoins pegged to the US dollar currently dominate the market, with Tether (USDT) at $90 billion holding the top spot, followed by Circle’s USDC at $24 billion. However, with the rise of Solana and its integration with EURC, there is potential for more diverse options in stablecoins and an expansion into other fiat currencies. The current market capitalization for EURC stands at $55 million.
For Solana, the EURC stablecoin operates through the Solana SPL (Smart Program Library) token standard, a set of guidelines imposed by Solana to ensure interoperability with its ecosystem. Circle first partnered with Solana in February this year with the official introduction of its USDC stablecoin to the platform.