Stablecoin issuer Circle has expanded its euro-backed stablecoin, EURC, to the Stellar blockchain, offering another option for users in the eurozone to conduct transactions in their local currency. Previously only available on the Ethereum and Avalanche networks, EURC’s integration with Stellar provides users with the same speed, low cost, and reliability that the Stellar network is known for.
Stablecoins, such as EURC, play a crucial role in the Web3 ecosystem by enabling users to perform various fiat currency-related activities on blockchain networks. They allow users to send payments, borrow currency, lend it out for interest, and more. Currently, the U.S. dollar-backed USD Coin (USDC) and Tether (USDT) are the sixth and seventh largest cryptocurrencies by market cap, respectively. Tether’s contract is also among the top consumers of gas fees on Ethereum, highlighting the prevalent use of stablecoins in the market.
While many stablecoins are backed by the U.S. dollar, the introduction of euro-backed stablecoins opens up opportunities for users who want to transact in their local currency. Circle initially addressed this need in 2022 with the launch of EUROC, a euro-backed stablecoin on Ethereum. The euro, currently the second most traded fiat currency globally and the official currency for 20 European countries, has significant economic influence. To increase accessibility, Circle renamed EUROC to EURC when it launched a native version on the Avalanche network on May 25, 2023.
The recent integration of EURC on the Stellar blockchain expands the availability of the stablecoin to a third blockchain network. This enables eurozone residents to conduct business on the blockchain using EURC and facilitates the adoption of cryptocurrencies as payment methods. Crypto payment provider Ripio has already integrated with the new version of EURC, allowing its users in Spain to deposit and withdraw EURC using the Stellar network. This integration is expected to encourage more Spanish users to embrace crypto for faster and cheaper global transactions.
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EURC’s expansion to Stellar is not the only example of euro-backed stablecoins in the market. The Stasis Euro (EURS) on Cardano and Membrane Finance’s EUROe on Ethereum are other examples of stablecoins backed by the euro. These developments highlight the growing demand for stablecoins linked to various fiat currencies and the importance of providing users with options for transacting in their preferred currency.
The integration of EURC with Stellar also demonstrates the flexibility and compatibility of blockchain networks. By expanding to multiple networks, stablecoin issuers enhance accessibility and interoperability, allowing users to choose the network that best suits their needs. This strategy not only promotes widespread adoption but also fosters innovation and competition among blockchain networks.
Furthermore, the expansion of stablecoins backed by different fiat currencies reinforces the decentralization and democratization of the global financial system. It provides individuals around the world with more equal and accessible opportunities to participate in the digital economy. As stablecoins continue to gain popularity and acceptance, they contribute to the advancement of Web3 and the vision of a decentralized and inclusive financial ecosystem.
In conclusion, Circle’s launch of EURC on the Stellar blockchain expands the availability of the euro-backed stablecoin, providing eurozone residents with more options for transacting in their local currency. This expansion aligns with the growing demand for stablecoins backed by different fiat currencies, promoting inclusivity and accessibility in the digital economy. As stablecoins continue to evolve and integrate with various blockchain networks, they play a crucial role in the development of Web3 and the transformation of the global financial system.
