coindesk.com
Circle deployed its euro stablecoin on the Solana network to boost on-chain foreign exchange transactions and remittances.
The company said it intends EURC to be a regulated e-money token under EU regulations.
Stablecoin issuer Circle Internet Financial said its euro-backed stablecoin EURC is live on the Solana (SOL) blockchain, which is known for cheap, speedy transactions and the support of multiple ecosystem applications.
Solana-based decentralized finance (DeFi) apps and digital wallets including Jupiter Exchange, Meteora, Orca and Phoenix have added support for the stablecoin, allowing users around-the-clock foreign-exchange transactions, trading, borrowing and lending with the token. The expansion to Solana follows native implementations on the Avalanche (AVAX), Ethereum (ETH) and Stellar (XLM) blockchains.
"EURC is well positioned to radically enhance utility across peer-to-peer transfers and European remittance corridors," Circle said Monday.
Stablecoins, a $130 billion asset class, are a key piece of plumbing in the digital asset market, serving as a bridge between government-issued fiat money and cryptocurrencies supporting trading and transactions on blockchain networks. They are also increasingly used for savings in developing countries with fragile financial systems and for remittances across borders, offering faster and cheaper transactions than traditional banking alternatives.
Research firm Bernstein forecast earlier this year that stablecoins could potentially grow to become an almost $3 trillion market in the next five years as global financial and consumer platforms tap the tokens on public blockchains to power value exchange.
Read more: Visa Taps Solana and USDC Stablecoin to Boost Cross-Border Payments
Circle, the company behind the second-largest stablecoin, USDC, introduced the euro-pegged cryptocurrency in June last, backed by a mix of European government debt and cash in reserves.
Euro stablecoins have struggled to attract users, with U.S. dollar-pegged tokens the overwhelming majority of the $130 billion stablecoin market. EURC's market capitalization currently stands around $55 million. That compares with USDC's $24 billion and market leader tether (USDT)'s $90 billion.
Circle said it plans EURC to be a regulated e-money token under the upcoming European Union-wide digital asset regulations called MiCA.
"Users will be able to securely hold savings in euro without the need for a traditional bank account, offering a powerful tool for those looking to safeguard against local currency volatility or devaluation risks that afflict numerous regions globally," said Rachel Mayer, vice president of product management at Circle.