Stablecoin issuer Circle has announced that it plans to issue a euro-backed stablecoin in the US that will trade from June 30.
The token, named Euro Coin, will reportedly be regulated and backed by stablecoin issued under the same full-reserve model managed with the full aspects of trust, transparency, and security.
Each circulating EUROC token will have an equivalent euro-denominated reserve based in the custody of financial institutions regulated in the US.
Silvergate has been selected as the first custodian of the stablecoin, which aims to give enterprises access to euro liquidity. It will reportedly be used in trading, lending, and borrowing.
EUROC will first be deployed on the Ethereum blockchain as an ERC-20 standardized token.
The stablecoin will be Circle’s second digital asset and has since received support from multiple industry players, including Binance.US, Compound, Curve, FTX, and MetaMask, among others.
Stablecoins were initially created to offer cryptocurrency traders access to liquidity amid banking restrictions. The asset class has risen to serve the unbanked and underbanked users. Data from CoinMarketCap shows that the global market for stablecoins currently stands at $157.5 billion.