Boston-based stablecoin issuer Circle plans to roll out its euro-pegged stablecoin on Solana (SOL) network in the first half of 2023.
The move to expand native support of Euro Coin and access to new permissionless cross-chain infrastructure marks Circle’s first in a series of commitments to integrate with other blockchains, including Ethererum and Avalanche.
Sam Bankman-Fried’s crypto exchange, FTX, will be the first platform to support deposits, withdrawals, and trading of Solana-based Euro Coin at launch. Many of the largest decentralized finance (DeFi) protocols on Solana have also expressed their intent to support Euro Coin, including Raydium and Solend.
“The availability of Euro Coin on Solana unlocks new use cases for instant FX, provides optionality for traders with a new base currency, allows for Euro Coin lending and borrowing and will be available alongside USDC as a payment currency in Solana Pay. Stablecoins such as Euro Coin on fast, efficient chains with near instant settlement like Solana will be the future of banking and fintech,” said Sheraz Shere, Head of Payments at Solana Labs.
Dubbed ‘Euro Coin (EUROC),’ the asset is issued under the same full-reserve model as Circle’s USD Coin (USDC), a stablecoin pegged to the US dollar currency with more than $54 billion in circulation.
Created to satisfy euro-biased crypto enthusiasts, Circle believes that the new token can provide protection during periods of extreme volatility in the market while improving the risk and return metrics of crypto-investment portfolios.
Similar to USDC, EUROC is fiat-collateralized with each stablecoin unit is backed by a corresponding unit of Euro. Specifically, Silvergate Bank acts as the initial custodian for Euro Coin to ensure it’s always 100% backed by fiat money held in euro-denominated banking accounts.
Acting as a sort of safe haven where crypto traders can park their assets in volatile markets, EUROC is an Ethereum-based ERC-20 coin, which makes it easy for wallets, exchanges and other smart contracts to interact with the token.
Circle has been expanding the reach of the offering that is primarily focused on retail trading and investing to appeal for B2B partnerships. Currently, the crypto unicorn opens the doors of its stablecoin to businesses with a dedicated account that provides a toolbox of APIs to allow developers to build on top of USDC.
Circle is also in discussions with US regulators to become the fourth crypto-native company to score a federal trust charter through the Office of the Comptroller of the Currency (OCC).
