Circle Expands Its Reach by Launching EURC on Coinbase’s Ethereum Layer-2 Network, Base

Circle, the issuer of popular stablecoins USDC and EURC, has expanded its reach by launching EURC on Coinbase's Ethereum layer-2 network, Base.

Stablecoin issuer Circle has integrated its EURC stablecoin with Coinbase’s Ethereum layer-2 network, Base. This marks EURC’s first direct deployment on an Ethereum layer-2. Before this development, layer-2s could only access a derivative form of EURC, which was backed by versions of the stablecoin deployed on other networks.

Highlighting another key aspect of EURC’s launch on Base, both Circle’s US dollar-backed stablecoin USDC and EURC are now available on the L2 network. Notably, USDC and EURC are the only stables from a major stablecoin issuer that are compliant with the new Markets in Crypto-Assets (MiCA) regulation, which is part of the EU’s comprehensive crypto asset regulations.

This development also positions Circle at an advantage over other stablecoin issuers such as Tether, whose Euro stablecoin EURT was delisted on Bitstamp due to noncompliance with MiCA regulations.

Significantly, this integration will allow users to swap their EURO for dollars and vice-versa. An interesting takeaway from a 2023 study is that forex trades on blockchain can reduce costs by up to 80%. However, traders using Base’ EURC might have to be patient, as EURC is yet to be listed on decentralized exchanges like Aerodrome, Uniswap, and BaseSwap.

This latest news follows another recent milestone for Circle in the financial landscape. Earlier this month, CNF reported that Circle became the first stablecoin issuer to achieve compliance with the MicA regulations. This achievement enables Circle to officially offer USDC and EURC to European customers under the supervision of French regulators ACPR.

This compliance, as many see it, including analysts, is a pivotal moment in the evolution of digital currency. It also reflects Circle’s long-term vision of utilizing blockchain technology to facilitate fiat digital currencies on open and compatible networks.

Commenting on the significance of the regulatory board compliance, Circle CEO Jeremy Allaire had this to say:

Today’s announcement from Circle is a major milestone in the ongoing development of the internet financial system, with one of the largest economies in the world having established clear regulations that make stablecoins legal electronic money, and ushering in a phase in the crypto market’s development as a mainstream infrastructure for payments, finance and commerce.

In further demonstration of its commitment to regulatory adherence, Circle has established its European headquarters in France, which is known for having robust policies in this domain. As the digital asset landscape continues to evolve, Circle is aiming for a wider and greater adoption of the newly launched EURC stablecoin.