Circle, a leading global financial technology firm, has officially launched its euro-pegged stablecoin, EURC, on the Base blockchain. This significant milestone, achieved in collaboration with Coinbase, marks a pivotal step in expanding the utility and accessibility of euro-backed digital assets. With a current circulating supply of 34.8 million euros, EURC is designed to bring the stability of the euro to the dynamic world of cryptocurrencies.
Understanding EURC and Its Full-Backed Reserves
EURC operates on a full-reserve model, mirroring the structure of its widely adopted sibling, USDC. Each EURC token is backed 1:1 by euros held in reserved bank accounts. This ensures that holders can always redeem their EURC for an equivalent amount of euros, providing a stable and reliable digital representation of the fiat currency. This model is crucial for maintaining trust and ensuring the stablecoin's value remains pegged to the euro.
The launch on Base, an Ethereum Layer-2 (L2) solution incubated by Coinbase, is particularly noteworthy. Base is built on the open-source OP Stack and is designed to be a secure, low-cost, and developer-friendly environment for building decentralized applications (dApps). By choosing Base, Circle leverages the network's scalability and efficiency to offer seamless EURC transactions.
Key Features of EURC on Base
- Full Regulatory Compliance: EURC is the first and only euro stablecoin fully compliant with the European Union's Markets in Crypto-Assets (MiCA) regulations. This compliance provides a significant layer of trust and legitimacy for institutional and retail users within the EU and beyond.
- Multi-Chain Interoperability: While now available on Base, EURC is also natively accessible on other major blockchain networks, including Ethereum, Solana, Avalanche, and Stellar. This allows for flexible and efficient cross-chain transfers and use cases.
- Zero Fee Transfers on Coinbase: Users can transfer EURC on the Base network via Coinbase and the Coinbase Wallet without incurring any gas fees, making it highly cost-effective for everyday transactions.
- Enterprise-Grade Minting: The primary portal for creating new EURC is Circle Mint, an institutional-grade service that allows approved enterprises and financial institutions to mint EURC on supported blockchains, including Base.
How to Mint EURC on the Base Network
The process of minting new EURC tokens is designed for institutional players rather than individual retail users. It is a permissioned process that ensures regulatory compliance and security.
- Eligibility and Application: The service is intended for businesses, financial institutions, and large wholesalers. Interested parties must apply directly through Base or Circle to gain access to the minting facilities.
- Rigorous Verification: Applicants must undergo a comprehensive Know Your Customer (KYC) check, background investigation, identity verification, and sanctions screening. This stringent process is in place to prevent fraud and comply with global financial regulations.
- Geographic Availability: Circle Mint's services are available in specific jurisdictions. In Asia, this currently includes Taiwan, Japan, South Korea, and Singapore. Within the United States, services are not available to residents of Hawaii or New York. It is essential to check the latest information on Circle's official website for the most current details on availability.
👉 Explore institutional minting options on Base
Custody and Fee Structure for EURC
For holders, Circle currently does not charge any custody fees for EURC held in a Circle Mint account. However, it's important to note that Circle retains any interest or returns generated from the funds held in these reserved accounts.
For institutions using the Circle Mint API to facilitate transactions, Circle may impose network fees for API calls. Any applicable fees are detailed in a separate service agreement between Circle and the institution.
The Strategic Importance of EURC on Base
The introduction of a fully compliant euro stablecoin on a scalable L2 like Base has profound implications for the broader crypto economy and traditional finance.
- Simplifying Cross-Border Payments: EURC enables near-instantaneous and low-cost cross-border euro transactions, bypassing the traditional banking system's inefficiencies and high fees. This is a game-changer for international trade and remittances.
- Onboarding New Users: By providing a familiar euro-denominated entry point, EURC lowers the barrier to entry for millions of users and businesses in Europe and other euro-linked economies, helping to drive the next wave of adoption in the crypto space.
- Strengthening Base's Ecosystem: The launch of EURC follows the tremendous success of USDC on Base, which has a circulating supply of nearly $3 billion on the network. The addition of a major euro stablecoin solidifies Base's position as a leading L2 solution for real-world financial applications, from trading and lending to sophisticated payment solutions.
Jesse Pollak, a creator of Base, highlighted this vision, noting that EURC makes it easier for everyone around the world to conduct seamless cross-border transactions, unlocking new economic opportunities.
Frequently Asked Questions
What is EURC?
EURC is a euro-backed stablecoin issued by Circle. Every EURC token is fully backed by a euro held in a bank account, making it a stable digital asset that can be used for payments, trading, and as a euro hedge within the crypto ecosystem.
How is EURC different from USDC?
The core technology and full-reserve model are identical. The key difference is the underlying fiat currency backing. USDC is pegged to the U.S. dollar, while EURC is pegged to the euro. EURC also holds the distinction of being MiCA compliant.
Can anyone mint EURC?
No. Minting new EURC is a process reserved for approved institutions, enterprises, and financial service providers. These entities must undergo a rigorous application and verification process through Circle Mint to gain minting capabilities.
On which blockchains is EURC available?
EURC is a native digital asset on multiple blockchains. It can be used interchangeably on Avalanche, Base, Ethereum, Solana, and Stellar networks.
Are there fees for holding or transferring EURC?
Circle does not charge custody fees for holding EURC. Transferring EURC on the Base network via Coinbase products is free of gas fees. However, standard network fees may apply when moving assets between different wallets or chains.
Is my EURC investment safe?
Like all cryptocurrency investments, holding EURC carries inherent risks related to market volatility and the underlying technology. While its full-backing provides price stability relative to the euro, users should always exercise caution and conduct their own research before engaging with any digital asset.
The launch of EURC on Base represents a maturation of the digital asset industry, bridging the gap between traditional European finance and the innovative potential of blockchain technology. It paves the way for a more inclusive and efficient global financial system.