Circle Boosts Around-the-Clock Forex with EURC on Solana
Circle, a stablecoin issuer, has taken a significant step in enhancing foreign exchange transactions and remittances by deploying its euro-backed stablecoin, EURC, on the Solana blockchain.
The move is aimed at leveraging the Solana network’s characteristics, known for its cost-effective and rapid transactions, along with support for various ecosystem applications.
Circle envisions EURC to function as a regulated e-money token under EU regulations, providing users with a reliable and compliant digital asset.
Solana Integration and DeFi Support
Stablecoin issuer Circle Internet Financial has successfully launched EURC on the Solana (SOL) blockchain. Solana’s features, such as low transaction costs and quick processing times, make it an ideal platform for around-the-clock foreign exchange transactions and remittances.
Several Solana-based decentralized finance (DeFi) apps and digital wallets, including Jupiter Exchange, Meteora, Orca, and Phoenix, have incorporated support for EURC. This integration allows users to engage in foreign exchange transactions, trading, borrowing, and lending with the stablecoin.
- EURC on Solana enables 24/7 foreign exchange transactions.
- Supported Solana-based DeFi apps include Jupiter Exchange, Meteora, Orca, and Phoenix.
- The expansion to Solana follows previous implementations on Avalanche (AVAX), Ethereum (ETH), and Stellar (XLM) blockchains.
Stablecoins in the Digital Asset Market
Stablecoins, constituting a $130 billion asset class, play a crucial role in the digital asset market by bridging the gap between government-issued fiat money and cryptocurrencies. They support trading and transactions on blockchain networks and are increasingly utilized for savings in developing countries and cross-border remittances.
Research firm Bernstein projects stablecoins to potentially grow into a nearly $3 trillion market over the next five years. Global financial and consumer platforms are expected to leverage these tokens on public blockchains for value exchange.
EURC Market Position and Regulatory Compliance
Circle introduced EURC in June, backed by a combination of European government debt and cash reserves. Despite being a significant player, Euro stablecoins face challenges in attracting users compared to their U.S. dollar-pegged counterparts.
Currently, EURC’s market capitalization stands at around $55 million, while USDC boasts $24 billion and market leader tether (USDT) holds $90 billion.
Circle emphasizes its commitment to regulatory compliance and plans to position EURC as a regulated e-money token under the upcoming European Union-wide digital asset regulations known as MiCA.
Rachel Mayer, Vice President of Product Management at Circle, highlights that EURC allows users to securely hold savings in euros without the need for a traditional bank account. This feature provides a powerful tool for individuals seeking to safeguard against local currency volatility or devaluation risks globally.