Thomas Daniels
Stablecoin issuer Circle has unveiled its euro-backed stablecoin, Euro Coin (EURC), on Coinbase’s layer-2 network, Base. This launch aligns with Circle’s strategy to expand its market presence in light of Europe’s Markets in Crypto-Assets Regulation (MiCA) implementation.
Circle’s regulated EURC, pegged 1:1 to the euro, joins its U.S. dollar-pegged counterpart, USD Coin (USDC), already the largest stablecoin on Base with over $3 billion in circulation. Blockchain developers can now access EURC on Base via Circle’s Testnet Faucet on Base’s Sepolia test network.
The move is seen as a strategic effort by Circle to capitalize on Europe’s regulatory environment. Analysts from blockchain analytics firm Kaiko have noted Circle as a primary beneficiary of MiCA regulations, which target the crypto market and stablecoins.
Since MiCA’s implementation, Circle’s USDC has experienced significant increases in daily trading volumes. Concurrently, major crypto exchanges like Binance, Bitstamp, Kraken, and OKX have delisted non-compliant stablecoins for European users, clearing the path for regulated entities like Circle to dominate. This development has also raised questions about Tether’s future in Europe.
Circle’s expansion not only strengthens its market position but also bolsters its reputation and financial standing as it prepares for a potential initial public offering (IPO). Initially aiming for a public listing in July 2021, Circle later pursued a deal with Concord Acquisition Corp. in 2022, valuing the company at $9 billion. However, the anticipated SPAC deal did not materialize due to the U.S. Securities and Exchange Commission’s (SEC) refusal to approve the filing. The timing of Circle’s next IPO attempt remains uncertain.
