Lawrence Damilola
Circle’s euro-pegged stablecoin, EURC, has surpassed a market capitalization of €50 million (US$55.5 million).
Patrick Hansen, Circle’s Senior Director of EU Strategy & Policy, revealed that the stablecoin has experienced a 36% increase in issuance due to its recent launch on Base, an Ethereum Layer-2 solution incubated by Coinbase, and an uptick in activity on the Ethereum network.
EURC is currently listed on platforms such as Coinbase, Bitpanda, Bitstamp, and Bitvavo.
Hansen clarified that EURC remains the biggest euro-denominated stablecoin in circulation, especially after its AEUR equivalent, originating from Switzerland, stopped issuing and redeeming due to its association with Flowbank, which declared bankruptcy in Switzerland.
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The EURC issuance increase comes as the European Union prepares to implement the Markets in Crypto-Assets (MiCA) regulatory framework. This regulation is expected to enhance the operational landscape for stablecoins in the EU, promoting compliance and transparency.
Circle’s achievement of an Electronic Money Institution (EMI) license in France allows the company to operate USDC and EURC in alignment with EU regulations.
The outstanding requirements detailed in MiCA, which pertain to providers of crypto asset services, are scheduled to be enforced starting Dec. 30, 2024. Following this date, cryptocurrency organizations will have a deadline of July 2026 to ensure full compliance with MiCA’s regulations.
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Meanwhile, transactions using euro stablecoins have reached an all-time high of 1.1%, a significant rise from previous years. While USD-based stablecoins still dominate transactions, the share of euro-based transactions is gradually increasing.
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LAWRENCE
Lawrence is a cryptocurrency journalist covering blockchain developments and digital assets.
