Coinbase has announced the introduction of EURC (website), a new stablecoin that promises seamless 1:1 conversions with the Euro, starting August 28. EURC, which stands for Euro Coin, is an ERC-20 token fully compliant with the EU’s Markets in Crypto-Assets Regulation (MiCAR). This stablecoin is issued by Circle, the same company behind the widely used USD Coin (USDC), the second-largest stablecoin by market capitalization.
Key Features of EURC
EURC is designed to maintain a 1:1 peg with the Euro, ensuring that each EURC token is backed by an equivalent amount of euros held in euro-denominated bank accounts. This guarantees that users can convert their stablecoins to fiat currency seamlessly and securely. The introduction of EURC on Coinbase marks a significant step in offering European users a compliant and reliable stablecoin alternative, particularly as the crypto landscape in Europe becomes increasingly regulated under MiCA.
One of the major advantages of EURC on Coinbase is the lack of conversion fees, especially for transactions made through Coinbase Advanced. This fee-free conversion could make EURC an attractive option for users looking to move between digital and fiat currencies without incurring additional costs.
Integration with Coinbase and Base Blockchain
The launch of EURC is part of a broader strategy by Coinbase to expand its offerings of compliant digital assets. Earlier in August, Circle announced the deployment of EURC on Base, Coinbase‘s native blockchain platform. Base is designed to enhance transaction speed and reduce costs, providing a faster, more efficient alternative to Ethereum and other blockchains. By leveraging Base, EURC aims to offer a superior transaction experience, making digital Euro transactions more accessible and practical for everyday use.
Market Adoption and Future Outlook
Despite its promising features, EURC is still in the early stages of market adoption. The stablecoin was introduced to the crypto markets just over two years ago, and its journey has been marked by fluctuations in market capitalization. During 2022, EURC reached a peak market cap of over $80 million.
As of August 23, 2024, EURC’s market capitalization stands at $51.55 million, reflecting a cautious recovery. The ongoing integration of EURC into Coinbase’s platform and its compliance with MiCA could drive further adoption, particularly among European users seeking a regulated and stable digital asset.