Tether under pressure as Circle's euro stablecoin hits record high of $100 million
Tether under pressure as Circle's euro stablecoin hits record high of $100 million
Circle, the issuer behind popular digital currencies such as USDC, is rapidly gaining traction with its euro-backed stablecoin. The Euro Coin (EURC) has reached a circulating supply exceeding €91 million, bringing it close to a key milestone of $100 million in market capitalization, highlighting growing demand for euro-denominated digital assets.
The surge in EURC’s supply reflects the increasing appetite for stablecoins tied to fiat currencies beyond the U.S. dollar. Euro Coin, launched by Circle in 2022, mirrors the structure of USDC by being fully backed by euro-denominated reserves. This ensures that each token is redeemable on a 1:1 basis, offering stability and trust to users operating within the volatile cryptocurrency market.
The growing capitalization of EURC underscores the shifting dynamics in the digital currency landscape, with a broader diversification of stablecoins gaining prominence. While U.S. dollar-pegged stablecoins have traditionally dominated the market, the rise of Circle’s euro-backed asset highlights the potential for regional currencies to play a more significant role in the crypto ecosystem.
Circle's director of EU strategy and policy, Patrick Hansen, said EURC is currently the largest euro-linked stablecoin.
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Circle’s strategy of expanding into euro-backed stablecoins aligns with its goal of fostering greater financial inclusion and cross-border commerce. The introduction of EURC offers new avenues for businesses and investors seeking a stable medium of exchange denominated in euros, facilitating transactions and payments across the European market without the need for traditional banking intermediaries.
Experts believe that the rise of non-dollar stablecoins like EURC could reduce reliance on U.S.-based assets in international finance. With regulatory frameworks for digital currencies evolving across the globe, Circle’s Euro Coin positions itself to capture market share in Europe, where demand for alternative payment solutions continues to grow.
Looking ahead, Circle’s success with EURC could inspire other issuers to explore stablecoins backed by additional fiat currencies, further broadening the options available to consumers and investors. As the market capitalization of EURC inches closer to the $100 million mark, it will serve as a barometer for the potential of euro-denominated assets in the broader cryptocurrency market.
It is worth noting that experts have noted a significant shift in the number of stablecoin transactions in the US. It turned out that the U.S. is lagging behind in the adoption of stablecoins, even though global demand for these digital assets is growing. Meanwhile, other countries are making rapid progress in integrating stablecoins into their financial systems.
See also: CryptoQuant founder says Bitcoin will soon become a full-fledged currency
