Circle, a stablecoin issuer, is now seeking assistance from the actively used Solana blockchain to launch a euro-backed stablecoin, EURC. Renowned for its cost-effective and speedy transactions, Solana is a blockchain platform that supports various ecosystem applications.
1/ The holiday season is nearly upon us and we have an early surprise…$EURC is now available on @solana’s ultra-fast, near-zero cost network!The time is now for 24/7 on-chain FX with global, instant settlement. Learn more https://t.co/hrCirklYGY
— Circle (@circle) December 18, 2023
Wide DeFi adoption on Solana
Key Decentralized Finance (DeFi) platforms and digital wallets on Solana, including Jupiter Exchange, Meteora, Orca, and Phoenix, have swiftly integrated support for EURC. This development enables users to engage in foreign exchange transactions, trading, borrowing, and lending with the stablecoin seamlessly, 24/7.
EURC’s expansion to Solana follows its initial implementation on Avalanche (AVAX), Ethereum (ETH), and Stellar (XLM) blockchains. Circle believes that EURC is strategically positioned to significantly enhance utility in peer-to-peer transfers and European remittance corridors.
Stablecoins, constitution a $130 billion asset class, play a crucial role in the digital asset market by bridging the gap between traditional fiat money and cryptocurrencies. They facilitate efficient trading and transactions on blockchain networks and are increasingly utilized for savings in regions with weak financial systems and for cross-border remittances, offering faster and more cost-effective alternatives to traditional banking.
Potential for explosive growth in stablecoin market
Research from Bernstein suggests that the stablecoin market could potentially grow to nearly $3 trillion in the next five years, as global financial and consumer platforms increasingly leverage these tokens on public blockchains for value exchange.
Circle, known for its widely-used stablecoin USDC, introduced EURC in June last year. The stablecoin is backed by a combination of European government debt and cash reserves. Despite the challenges faced by euro stablecoins in attracting users, Circle is optimistic about EURC’s potential impact. Currently, EURC’s market capitalization is approximately $55 million, in contrast to USDC’s $24 billion and the market leader tether (USDT)’s $90 billion.
Circle has outlined plans for EURC to become a regulated e-money token under the forthcoming European Union-wide digital asset regulations known as MiCA. This move signifies a step towards greater accessibility and adoption of stablecoins, offering users on Solana and other supported blockchains a seamless experience in utilizing EURC for various financial activities.
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