Circle Unveils Euro-Backed Stablecoin (EURC) on Coinbase\'s Layer-2 Network, Base

Stablecoin issuer Circle has unveiled its euro-backed stablecoin, Euro Coin (EURC), on Coinbase's layer-2 network, Base.

Stablecoin issuer Circle has unveiled its new stablecoin, Euro Coin (EURC), pegged 1:1 to the euro, on Coinbase's layer-2 network, Base. This launch is part of Circle's strategy to expand its market presence following the implementation of Europe's Markets in Crypto-Assets Regulation (MiCA).

The regulated EURC stablecoin is now available on Base through Circle's Testnet Faucet on Base's Sepolia test network. Notably, Circle's flagship stablecoin, USD Coin (USDC), which is pegged to the U.S. dollar, is already the largest stablecoin on Base, boasting a circulation of over $3 billion.

This move is seen as a strategic effort by Circle to capitalize on Europe's regulatory environment. According to analysts from blockchain analytics firm Kaiko, Circle is expected to be a primary beneficiary of MiCA regulations, which aim to regulate the crypto market and stablecoins.

Since the implementation of MiCA, Kaiko has observed significant increases in the daily trading volumes of Circle's USDC stablecoin. At the same time, major crypto exchanges like Binance, Bitstamp, Kraken, and OKX have delisted non-compliant stablecoins for European users, paving the way for regulated entities like Circle to dominate this market. This development has also raised questions about the future of Tether (USDT) in Europe.

Moreover, Circle's expansion into Europe not only strengthens its market position but also bolsters its reputation and financial standing as it prepares for a potential initial public offering (IPO).

After initially aiming for a public listing in July 2021, Circle pursued a deal with Concord Acquisition Corp. in 2022 to go public through a special purpose acquisition company (SPAC) merger, which would have valued the company at $9 billion. However, the anticipated SPAC deal did not come to fruition as the U.S. Securities and Exchange Commission (SEC) reportedly declined to approve the filing. The timing of Circle's next IPO attempt is yet to be determined.

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