- Circle obtained an E-money License for USDC and EURC under MiCA laws earlier.
- The main benefits of introducing the EURC are use-cases and regulatory compliance.
The USDC stablecoin issuer Circle, has announced launch of EURC, its first euro-backed stablecoin, on Base, a layer 2 blockchain. Developers are being incentivized to create a digital currency backed by the euro in an attempt to facilitate quicker and cheaper transactions for people all around the world.
It is worth mentioning that EURC has joined USDC, the biggest stablecoin on the Base network, which has a circulation of $3 billion as of July 9. To improve the speed and scalability of Ethereum, Coinbase introduced Base, a layer two blockchain.
Strategic Move
By meeting the requirements of the new MiCA (Markets in Crypto Assets) law, Circle has made history by adding EURC and USDC to Base, making it the first global stablecoin issuer. The main benefits of introducing EURC are the confidence and compliance that are necessary for an on-chain euro equivalent. With the launch of USDC on Base last year and now EURC, Circle seems to have achieved tremendous progress in this regard.
Moreover, there are many advantages to introducing the aforementioned stablecoins on Base. There are regulated and entirely reserve backed stablecoins. These stablecoins may be exchanged for euros and dollars at a 1:1 ratio, respectively. Additionally, qualifying firms may take use of institutional on/off ramps like Circle Mint thanks to the integration.
At the same time, the stablecoin integration opens up Coinbase’s worldwide on- and off-ramp network to retail users. Plus, there are a plethora of use cases, including low-cost marketplace payouts, peer-to-peer payments, and cross-border payments with quick settlements for cross-border remittances.
In the meanwhile, the stablecoin behemoth recently achieved great accomplishments recently. This includes obtaining an E-money License for USDC and EURC under MiCA laws, as previously reported.
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