Coinbase welcomes the stablecoin EURC and will enable 1:1 conversions with the fiat currency Euro, starting from August 28.

EURC is an ERC20 token that complies with the European MiCa regulation, issued by Circle (the same issuer of USDC).

Coinbase is adding support for the EURC stablecoin on August 28, enabling 1:1 conversions between the fiat currency euro and EURC.

Coinbase will add support for EURC (EUR Coin), a stablecoin pegged to the euro at a 1:1 ratio. According to an announcement on August 27, the leading crypto exchange will begin enabling 1:1 conversions between the fiat currency euro and EURC on August 28.

EURC is an ERC-20 stablecoin issued by Circle, the crypto company behind the second-largest stablecoin by market capitalization, USD Coin (USDC). The stablecoin is fully backed by euros that are held in euro-denominated bank accounts.

Coinbase’s involvement appears to be largely driven by EURC’s compliance with the European Union’s new Markets in Crypto Assets (MiCA) regulation. The exchange will reportedly offer the conversions on Coinbase Advanced without any associated fees.

The news follows an announcement in early August revealing that Circle had integrated EURC onto Base, Coinbase’s blockchain. Compared to Ethereum and other blockchains, Base is designed to make EURC transactions faster and cheaper, essentially offering a more accessible fiat currency.

Despite being over two years old, EURC is not yet widely used. The stablecoin peaked at a market capitalization of over $80 million in 2022. However, the collapse of FTX caused EURC to drop to below $30 million.

At the time of writing, EURC has a market capitalization of $57.2 million.

Version 2.2 of USDC and EURC

In November 2023, Circle rolled out version v2.2 for USDC and EURC in an effort to enhance several aspects of the stablecoins.

The update primarily aimed to reduce transaction fees by roughly 7%. Additionally, other factors included increased security on EVM networks and improvements in crypto resource efficiency.

The new version for the two stablecoins was finalized in January 2024 without requiring any action from the community.

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