As with USDC, the EURC on the Stellar network is redeemable at a ratio of 1:1 to the backing fiat currency at any time of the day and week.
Leading stablecoin issuer, Circle Internet Financial LLC, and the Stellar Development Foundation (SDF) announced the launch of EURC on the Stellar network. The EURC stablecoins now run on three layer one (L1) blockchains including Ethereum (ETH), Avalanche (AVAX), and now Stellar (XLM) network. As a result, DeFi and Dapps developers on the three chains can build financial ecosystems that tap into the EURC to capture the European market. Moreover, the EURC is redeemable to the Euro at a ratio of 1:1 on a 24/7 basis.
The Stellar network was an easy choice for the Circle team as it offers a secure, scalable, and affordable ecosystem to run tokenized assets. Additionally, the Stellar network has been active in the European market including facilitating seamless aid transfers to the affected people in Ukraine. Nonetheless, Stellar Network and Circle have collaborated on other projects before including the USDC market.
Following the launch of EURC on the Stellar network, the total assets in circulation on all three chains added up to about €49.2 million, and a similar amount in the reserves. Notably, the reserve cash for EURC is held in United States-based financial institutions.
“The launch of EURC on Stellar has the potential to radically enhance European remittance corridors, cross-border payments, treasury management, and aid disbursement,” Rachel Mayer, Circle’s VP of Product Management, noted.
Market Implications for Circle’s EURC on Stellar Network
The introduction of Circle’s EURC on the Stellar network will help open up the European market to the global economy and thus help compete fairly with other leading countries. According to the announcement, Ripio, a leading crypto company in Latin America that recently expanded to Spain, was the first web3 project to add EURC from the Stellar network to their wallet app, thus enabling seamless Euro deposits and withdrawals.
“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,” Sebastian Serrano, CEO and Co-Founder of Ripio, said.
According to Denelle Dixon, CEO and Executive Director of the Stellar Development Foundation, the launch of EURC on the Stellar network is strategic to secure future growth prospects for both entities. Moreover, there are similar products from different companies like Tether that will be a major competitor to the EURC. Nonetheless, the Stellar network has earned a reputation for providing quality and reliable digital assets services.
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