Stablecoin issuer Circle has launched a Stellar-based version of its euro-backed stablecoin, EURC, according to a Sept. 26 announcement. EURC was previously only available on the Ethereum and Avalanche networks.
Hello Europe meet our new friend EURC on #Stellar. Same speed, low cost, and reliability of the Stellar network we all know and love in a brand new currency.
With @circle’s EURC, we can’t wait to see what real-world utility builders unlock next.@TeanaTaylor breaks it… pic.twitter.com/eQE5sMZI2M
— Stellar (@StellarOrg) September 26, 2023
Stablecoins, or fiat-backed crypto tokens, have become an essential component of the Web3 ecosystem. They allow users to send payments, borrow currency, lend it out for interest and perform other fiat-currency-related actions on blockchain networks. The U.S. dollar-backed USD Coin (USDC) and Tether (USDT) are currently the sixth and seventh largest cryptocurrencies by market cap, respectively. Tether’s contract is the third-largest consumer of gas fees on Ethereum, according to Etherscan.
Most stablecoins are backed by the U.S. dollar, meaning if a user wants to send Web3 payments denominated in their local currency, there currently aren’t many options.
USDC-issuer Circle attempted to help solve this problem in 2022 by launching EUROC, a euro-backed stablecoin on Ethereum. According to research published by the Bank of International Settlements, the euro is the second most traded fiat currency in the world. It is currently the official currency for 20 countries in Europe. On May 25, Circle launched a native version of EUROC on Avalanche, and on Sept. 23, it was renamed “EURC.”
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The latest announcement means EURC is now available on three blockchain networks, potentially giving more options to eurozone residents to conduct business on the blockchain in their local currency.
According to the announcement, crypto payment provider Ripio has integrated with the new version of EURC. It now allows its users in Spain to deposit and withdraw EURC using the Stellar network. Sebastian Serrano, CEO and co-founder of Ripio, said the change will help encourage more Spanish users to adopt crypto as a payment method:
“In 10 years we’ve been extending our products all over Latin America and now we’re ready to set our footprint in Europe with this key integration. We are excited that people in Spain now have seamless access to digital assets like EURC and enjoy faster and cheaper transactions around the globe.”
The Stasis Euro (EURS) on Cardano and Membrane Finance’s EUROe on Ethereum are other examples of euro-backed stablecoins.