Circle debuts EURC, the euro stablecoin on Solana

The new euro-backed stablecoin is now available for issuance on Solana.

Stablecoin issuer Circle has announced the launch of EURC, a euro-backed stablecoin on the Solana blockchain. Circle shared its announcement earlier today via a post on X, adding that the stablecoin is expected to expand to more blockchain networks in 2024.

EURC is backed by traditional assets such as European government debt and cash reserves.

According to Circle, Solana’s launch of EURC provides developers and users with the opportunity to leverage EURC and USDC on Solana.

The company claims that its institutional-grade on-and-out lanes handled through Circle Mint enable businesses to seamlessly exchange euros (fiat currency) for euros (stablecoins). Major DeFi protocols on Solana will integrate EURC at launch, including Jupiter Exchange, Meteora, Orca, Raydium, and Phoenix. These platforms are designed to provide users with 24/7 instant forex, trading, lending, and EURC loans.

Circle’s decision to launch EURC on Solana is strategic, given that the Solana blockchain offers high speed and low transaction fees, making it an ideal platform for stablecoins. The launch of EURC on Solana expands the stablecoin’s availability on other blockchains such as Avalanche, ETH, and Stellar.

Circle also revealed that it is taking steps to comply with the Markets in Crypto Assets (MiCA) framework and the Market Authority (ESMA), which is regulated by the European securities regulator.

In recent years, stablecoins have gained popularity due to their ability to maintain a stable value while still offering the benefits of cryptocurrencies, such as fast transactions and borderless transfers.

According to a report by Bernstein Research, stablecoins are likely to experience tremendous growth, with the market size expected to reach nearly $3 trillion by 2028.

U.S.-pegged stablecoins currently dominate the market, with Tether (USDT) topping the list with $90 billion, followed by Circle’s USDC at $24 billion. However, with the rise of Solana and its integration with EURC, there is a potential for stablecoins to be more diverse in their options and expand to other fiat currencies. EURC currently has a market capitalization of $55 million.

For Solana, the EURC stablecoin operates through the Solana SPL (Smart Library) token standard, a set of guidelines implemented by Solana to ensure interoperability with its ecosystem.

Circle first partnered with Solana in February of this year and officially launched its USDC stablecoin on the platform.