• EUROC, a euro-backed stablecoin, has been launched on the Avalanche network by Circle as part of its multi-chain strategy.
• The push is part of the company’s long-term vision to tap into the European market.
• EUROC has a much smaller market cap than USD Coin (USDC) and hasn’t caused an uptick in Avalanche’s native token AVAX’s price.
EUROC Launched on Avalanche Network
Circle announced the launch of its euro-backed stablecoin, Euro Coin [EUROC] on the Avalanche [AVAX] network as part of its ambitious multi-chain strategy. This makes Avalanche the second home for EUROC after it was launched on Ethereum [ETH] last year.
Boosting On-Chain Liquidity
EUROC will boost on-chain liquidity on Avalanche and provide global users with an option to trade in euros besides USD Coin [USDC], which is pegged to USD. EUROC is 100% backed by euros held in euro-denominated banking accounts so that it’s always redeemable 1:1 for euros. It works under the same regulated framework as USDC. At the time of publication, its market cap was $51 million, far less than USDC’s $69 billion market cap according to DeFiLlama.
Foray Into European Markets
The aggressive EUROC push could be part of Circle’s long-term vision to tap into the European market – earlier this year, they applied for registration as a Digital Asset Service Provider in France. Furthermore, investors have been taking risk out of U.S., causing USDC’s circulating supply to contract significantly following Circle’s $3 billion exposure to collapsed Silicon Valley Bank (SVB).
No Price Uptick For AVAX
The news of expansion did not cause an uptick in Avalance’s native token AVAX’s price – at press time, it was marginally down 0.5%.
Circle has made a big move by launching Euro Coin (EUROC) on Avanlanche as part of their multi-chain strategy and long term vision for tapping into European markets despite USDC facing major issues due to their exposure with SVB bank collapse . While there may be more liquidity now available because of this move , no significant increase in AVAX prices can be noted yet .