Stablecoin issuer Circle is expanding its reach with the launch of its MiCA-compliant euro-backed stablecoin on layer-2 chain, Base.
Circle is bringing its regulated stablecoin, pegged 1:1 to euro (EURC), to Coinbase‘s layer-2 network called Base as part of its strategy to solidify its market presence amid the implementation of Europe’s Markets in Crypto-Assets Regulation (MiCA) regulations.
In an X thread on Tuesday, the stablecoin issuer noted that Euro Coin (EURC) joins USD Coin (USDC), Circle’s other stablecoin pegged to the U.S. dollar, which has already become the largest stablecoin on Base with over $3 billion in circulation. Circle added that blockchain developers can get access to EURC on Base by using its own Testnet Faucet on Base’s test network dubbed Sepolia.
— Circle (@circle) July 9, 20241/ 🥁 … $EURC is coming to @base!
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
Circle’s latest move might be seen as a strategic effort to maximize exposure amid Europe’s regulatory shift. Analysts at blockchain analytics firm Kaiko previously noted that Circle appears to be the main beneficiary of MiCA regulations, which target the crypto market and stablecoins specifically.
Following MiCA’s implementation, Circle’s USDC has seen the most significant increases in daily trading volumes. Meanwhile, major crypto exchanges like Binance, Bitstamp, Kraken, and OKX have begun delisting non-compliant stablecoins for their European customers, paving the way for more regulated entities like Circle to dominate the market. This also prompted many to speculate Tether’s future in Europe.
Beyond market domination, Circle’s product expansion aligns with its efforts to bolster its reputational and financial standing as it prepares for an upcoming initial public offering (IPO). Initially aiming for a public listing in July 2021, the Boston-based company later pursued a new deal with Concord Acquisition Corp. in 2022, valuing it at $9 billion.
However, the anticipated SPAC deal failed to materialize due to the U.S. Securities and Exchange Commission’s (SEC) refusal to approve the filing. The exact timing of Circle’s next IPO attempt remains unclear.