Circle Internet Financial Adds Support for EURC Stablecoin on Solana Blockchain
Stablecoin issuer Circle Internet Financial has expanded its support for the EURC stablecoin by integrating it into the Solana blockchain. This move aims to enhance the functionality of peer-to-peer transactions and European remittance corridors, potentially attracting interest from institutional investors. Additionally, Circle will enable users to hold euro savings without relying on traditional banks. EURC is already utilized on the Avalanche, Ethereum, and Stellar networks.
Jupiter DEX on Solana Enhances Liquidity for EURC
Jupiter, a decentralized exchange aggregator on the Solana blockchain, will facilitate the integration of EURC into various exchanges, decentralized finance (DeFi) applications, and NFT platforms. Two foreign exchange liquidity primitives provided by Jupiter, Dynamic FX pools and FX on DLMM, will support the launch of EURC. These primitives will lower borrowing costs and increase yields for liquidity providers while improving capital efficiency with reduced slippage. The fast settlement capabilities of Solana make it an attractive choice for EURC adoption.
Circle’s Cross-Chain Transfer Protocol Benefits Institutional Adoption
The recently released Cross-Chain Transfer Protocol (CCTP) by Circle enables the seamless transfer of stablecoins across different blockchain networks. This product offers value to institutions seeking reliable crypto rails following the failure of Silvergate Capital in March. The CCTP could attract more institutional inflows into euro stablecoins, especially as issuers comply with the new Markets-in-Crypto Assets (MiCA) laws. Compliance with MiCA regulations reduces counterparty risk through reserve rules. French bank Societe Generale has already launched a MiCA-compliant euro-backed stablecoin on Bitstamp.
Increased Euro Stablecoin Volume Expected with MiCA Compliance
Fintech company Tempo France predicts that the volume share of euro-backed stablecoins will reach 0.5% within the next three years. However, as of November, these stablecoins only accounted for 0.007% of total volumes, significantly lower than their US dollar counterparts. Negative interest rates and other factors have hindered the adoption of euro stablecoins in the European Union.
Hot Take: Circle’s EURC Stablecoin on Solana Boosts European Utility
The integration of EURC stablecoin onto the Solana blockchain through Circle Internet Financial presents exciting opportunities for peer-to-peer transactions, European remittance corridors, and institutional adoption. By leveraging Solana’s fast settlement capabilities and liquidity-enhancing platforms like Jupiter DEX, EURC aims to attract both retail users and institutional investors. The Cross-Chain Transfer Protocol (CCTP) by Circle further supports the growth of euro stablecoins by enabling seamless transfers across different networks. With compliance to MiCA regulations, euro-backed stablecoins may see increased volume and market share in the future.
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