Circle Launches Native EURC Stablecoin on Solana Blockchain

Circle Internet Financial, the entity responsible for the second-largest stablecoin, USDC, has strategically advanced its efforts to bolster foreign exchange transactions and remittances. This initiative involves the deployment of its euro-backed stablecoin, EURC, onto the Solana blockchain. The primary objective of this move is to capitalize on Solana's renowned capabilities for cost-effective and swift transactions, along with its extensive support for diverse ecosystem applications.

EURC has now been integrated into the Solana blockchain, expanding its presence beyond other well-known blockchains like Avalanche, Ethereum, and Stellar, where Circle had previously implemented its stablecoin. The integration with Solana has garnered support from various decentralized finance (DeFi) applications and digital wallets, including Jupiter Exchange, Meteora, Orca, and Phoenix. This widespread backing enables users to participate in foreign exchange transactions, trading, borrowing, and lending using the stablecoin around the clock.

Circle envisions EURC as a regulated e-money token, aligning with the regulatory framework set by the European Union. The company is optimistic about EURC's potential to significantly enhance utility in peer-to-peer transfers and European remittance corridors. Within the digital asset market, stablecoins, valued at $130 billion, play a pivotal role by bridging the gap between traditional fiat currencies and cryptocurrencies on blockchain networks.

Research conducted by Bernstein anticipates substantial growth in the stablecoin market, projecting a potential expansion to nearly $3 trillion in the next five years. This growth trajectory is fueled by the increasing utilization of stablecoins on public blockchains for value exchange by global financial and consumer platforms.

Introduced by Circle in June, EURC is backed by a combination of European government debt and cash reserves. Despite being introduced to address the Euro stablecoin market, including EURC, challenges persist in attracting users compared to their U.S. dollar-pegged counterparts dominating the stablecoin market with a combined value of $130 billion. Presently, EURC's market capitalization hovers around $55 million, while USDC boasts $24 billion, and the leading tether (USDT) commands $90 billion.

Despite the current dynamics of the market, Circle maintains an optimistic outlook for the future of EURC. The company underscores its commitment to adhere to upcoming European Union-wide digital asset regulations known as MiCA, ensuring regulatory compliance. This approach is anticipated to provide users with a secure avenue to hold savings in euros without the need for a traditional bank account. Rachel Mayer, Vice President of Product Management at Circle, emphasizes that EURC presents a robust tool for individuals seeking protection against local currency volatility or the risks of devaluation affecting various regions globally.

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