Circle Launches First MiCA-Compliant Stablecoin on Base
According to an announcement on July 9th, EURC on Base will be the first stablecoin compliant with the MiCA law within the network.
Circle Launches First MiCA-Compliant Stablecoin on Base. Image: Crypto News
The stablecoin issuer Circle has launched EURC, a euro-backed stablecoin, on the Layer-2 platform Base.
1/ 🥁 ... $EURC is coming to @base!
— Circle (@circle) July 9, 2024
We’re excited to bring EURC to Base, its first euro-backed stablecoin, enabling developers to deliver faster and cheaper commerce with a euro-backed digital currency for global users.
Explore what EURC will mean for Base.… pic.twitter.com/6THP9r7KJ1
Base becomes the fifth destination for this stablecoin, following Avalanche, Ethereum, Solana, and Stellar. Previously, Base only offered derivatives of EURC backed by versions on other networks.
This news benefits Base users seeking to convert euros to dollars or vice versa. A 2023 study concluded that blockchain-based forex transactions can save up to 80% in costs.
However, users may need to wait as some exchanges have yet to list EURC. Searching for "EURC" on Aerodrome, Uniswap, and BaseSwap on the Base network yielded no results at the time of writing.
Thus, EURC (formerly EUROC) and USDC (backed by US dollars) are the first MiCA-compliant stablecoins on Base. Circle secured the first stablecoin license under these regulations as of early July.
As reported by Coin68, MiCA represents a comprehensive legal framework for crypto assets harmonizing regulations across EU member states. Within these regulations, MiCA sets stringent conditions for issuing stablecoins in Europe.
To illustrate the strictness of these regulations, Bitstamp previously delisted EURC's competitor, Tether Euro (EURT), citing non-compliance with MiCA standards.
