EURC (Base)
EURO Coin is a fully collateralized Euro-based stablecoin issued and backed by Circle (a licensed custodian)
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- Base
- Asset Type: ERC-20
EURC is a low-cap, fully collateralized asset. This asset depends on a centralized entity for custody services.
EURC is a stablecoin that usually trades within 20bps of its peg to EUR, which makes it a solid store of value.
EURC (Base) has no dependencies.
EURC does not have a supply schedule. EUROC on Ethereum is backed 1:1 by EUR reserves held with a licensed custodian (Circle). EUROC is fully redeemable for its Euro reserves, providing an effective mechanism to retain the peg to €1.
What is EURC?
Euro Coin (EURC) is a fully-reserved, euro-backed stablecoin issued by Circle, the same company behind USD Coin (USDC). EURC is designed to maintain a stable value by being 100% backed by euro-denominated reserves held in regulated financial institutions. This ensures that each EURC token in circulation is equivalent to one euro, providing users with a reliable and transparent digital asset that mirrors the value of the euro.
How does EURC work?
EURC operates as a cash-collateralized stablecoin, meaning that for every EURC token issued, there is an equivalent amount of euros held by Circle in secure, regulated financial institutions. These reserves are regularly audited by Grant Thornton LLP to ensure full backing and transparency. The minting and burning process is straightforward: when users deposit euros into their Circle accounts, EURC tokens are minted and distributed on supported blockchain networks. Conversely, when users redeem EURC, the tokens are burned, and the corresponding euros are released from reserves. This mechanism ensures that EURC maintains its 1:1 peg with the euro, providing stability and trust for its users.
How is EURC used?
EURC is widely utilized within the DeFi ecosystem for various financial activities. It serves as a stable trading pair on both centralized and decentralized exchanges, allowing traders to hold a stable asset during volatile market conditions. Businesses can accept EURC as a form of payment from customers worldwide, pay employees and vendors, and offer rebates or rewards, thereby expanding their customer base and streamlining financial operations. Individuals can send and receive EURC payments between family and friends, pay merchants across borders, and engage in decentralized finance activities such as participating in NFTs, decentralized exchanges (DEXes), and lending pools. Additionally, EURC provides a predictable store of value, making it an attractive option for those looking to mitigate the risks associated with cryptocurrency price volatility without exiting the crypto ecosystem.
