Stablecoin issuer Circle is expanding its reach with the launch of its MiCA-compliant euro-backed stablecoin, Euro Coin (EURC), on Coinbase’s layer-2 blockchain, Base. The introduction of EURC, pegged 1:1 to the euro, marks a significant strategic move to solidify Circle’s market presence amid the implementation of Europe’s Markets in Crypto-Assets Regulation (MiCA).
In a statement released on Tuesday, Circle announced that the Euro Coin joins its other prominent stablecoin, USD Coin (USDC), which is pegged to the U.S. dollar and has already established itself as the largest stablecoin on Base with over $3 billion in circulation. Circle added that blockchain developers can access EURC on Base by using its Testnet Faucet on Base’s test network, Sepolia.
Circle’s latest initiative is seen by analysts as a strategic effort to maximize its exposure in light of Europe’s shifting regulatory landscape. Blockchain analytics firm Kaiko noted that Circle appears to be a primary beneficiary of the MiCA regulations, which specifically target the crypto market and stablecoins.
Since the implementation of MiCA, Circle’s USDC has experienced substantial increases in daily trading volumes. Concurrently, major crypto exchanges like Binance, Bitstamp, Kraken, and OKX have begun delisting non-compliant stablecoins for their European customers, creating a more favorable market environment for regulated entities like Circle. This regulatory shift has also led to speculation about the future of competing stablecoins like Tether in Europe.
Beyond market expansion, Circle’s product diversification aligns with its efforts to reinforce its reputational and financial standing as it eyes an upcoming initial public offering (IPO). Initially targeting a public listing in July 2021, the Boston-based company later pursued a new deal with Concord Acquisition Corp. in 2022, valuing the firm at $9 billion. However, the anticipated SPAC deal was stalled due to the U.S. Securities and Exchange Commission’s (SEC) refusal to approve the filing. The exact timing of Circle’s next IPO attempt remains uncertain.
