USDC operator Circle introduces new Euro Coin stablecoin

USD Coin (USDC) creator Circle announced on Thursday it will release the Euro Coin (EUROC), a redeemable stablecoin pegged to the euro, on June 30.

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Fast facts

• Ethereum-based EUROC will join Circle’s USDC, which is the world’s second-largest stablecoin with over US$54 billion in circulation, according to CoinGecko data.

• Stablecoins have come under fire since May after Terra’s LUNA and sister stablecoin UST wiped out an estimated US$40 billion within 48 hours.

• USDC is not an algorithmic stablecoin as UST, and Circle claims its stablecoins are backed by cash reserves and other forms of debt securities and bonds.

• EUROC’s full cash reserves will be held in euro (EUR) and follow the same regulated framework and reporting standards of USDC, according to Circle Chief Executive Officer Jeremy Allaire.

• Circle has been releasing monthly attestation reports drafted by a third-party accounting firm.

See related story: Circle’s head of policy calls CBDCs a ‘Preposterous Idea’: Consensus