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Circle Internet Financial, the issuer of stablecoin, announced that its euro-backed stablecoin EURC is now available on the Solana (SOL) blockchain, known for cheap, fast transactions and support for multiple ecosystem applications.
Circle’s Move to Solana
Jupiter Exchange, Meteora, Orca, and Phoenix, Solana-based decentralized finance (DeFi) applications and crypto wallets, announced support for the stablecoin.
Following this change, users will have the opportunity to perform foreign exchange transactions, trade, borrow, and lend at any time of the day through EURC. The expansion on the Solana network follows a series of implementations on the Avalanche (AVAX), Ethereum (ETH), and Stellar (XLM) blockchains.
Circle made the following statement on Monday:
EURC is well-positioned to radically improve peer-to-peer transfers and European remittance corridors.
Stablecoins, a $130 billion asset class, are increasingly gaining value as a significant intermediary in the crypto asset market. They are known for serving as a bridge between government-issued currencies and blockchains.
While it is emphasized that stablecoins are increasingly being used for high-savings cross-border remittances, it is also stated that they allow for faster and cheaper transactions than traditional banking alternatives.
Research firm Bernstein highlighted an important point. Earlier this year, considering the potential increase in stablecoins, it is estimated that the volume could turn into a nearly $3 trillion market over the next five years.
Stablecoin Introduction Took Place
Circle, the company behind USDC, the second-largest stablecoin following USDT, had introduced the euro-pegged stablecoin in June, which is backed by a mix of European government debt and cash reserves.
Euro stablecoins seem to struggle to attract users’ attention away from USDTs, which currently dominate the overwhelming majority of the $130 billion stablecoin market, at least for now.
Following the introduction of EURC, its market value rose to $55 million. This figure is very small compared to USDC’s $24 billion and the market leader tether’s (USDT) $90 billion. According to Circle’s statement, EURC is regulated in accordance with MiCA, and planning has been done accordingly.
Rachel Mayer, Vice President of Product Management at Circle, said:
“Users will be able to securely hold their savings in Euro without the need for a traditional bank account and offer a strong tool for those who want to protect against fluctuations in their local currency or the risk of devaluation affecting many regions globally.”