Stablecoin issuer Circle is expanding its reach with the launch of its MiCA-compliant euro-backed stablecoin on layer-2 chain, Base. Circle’s Euro Coin (EURC) will join its USD Coin (USDC) on Coinbase’s layer-2 network, Base, in a strategic move amid Europe’s new crypto regulations, MiCA.
Circle is bringing its regulated stablecoin, pegged 1:1 to the euro, to Coinbase’s layer-2 network Base as part of its strategy to solidify market presence with MiCA regulations.
In an X thread, the stablecoin issuer noted that Euro Coin (EURC) will join USD Coin (USDC) on Base. USDC has already become the largest stablecoin on Base, with over $3 billion in circulation.
Circle added that blockchain developers can access EURC on Base using its Testnet Faucet on Base’s test network dubbed Sepolia.
Circle’s latest move aims to maximize exposure amid Europe’s regulatory shift. Blockchain analytics firm Kaiko notes Circle appears to benefit most from MiCA regulations targeting the crypto market and stablecoins.
Following MiCA’s implementation, Circle’s USDC saw significant increases in daily trading volumes. Major exchanges like Binance, Bitstamp, Kraken, and OKX delisted non-compliant stablecoins, clearing the path for regulated entities like Circle.
This regulatory shift has led to speculation on Tether’s future in Europe.
Beyond market domination, Circle’s product expansion aligns with its efforts to bolster financial and reputational standing. Circle prepares for an upcoming IPO, initially aiming for a public listing in July 2021, later pursuing a new deal with Concord Acquisition Corp. in 2022, valuing it at $9 billion.
However, the anticipated SPAC deal failed to materialize due to the U.S. Securities and Exchange Commission’s (SEC) refusal to approve the filing. The timing of Circle’s next IPO attempt remains unclear.
