StablR Raises €3.3 Million in Seed Round to Expand Euro-Based Stablecoin Business
StablR, a stablecoin startup, has secured €3.3 million ($3.5 million) in a seed round to further develop its euro-backed stablecoin venture. Participants in the funding round included Deribit, Maven 11, Theta Capital, Folkvang, and Blocktech. Although the valuation was not disclosed, StablR has successfully launched its euro-backed stablecoin, known as EurR, which has already minted over 10 million tokens within its first month of operation.
Key Features of StablR’s Stablecoin
StablR aims to revolutionize the stablecoin market by establishing a new standard for stability and trustworthiness. The startup emphasizes several core features of its product: it is officially registered as a Virtual Financial Asset Issuer in Malta; it provides transparent visibility of its reserves through daily statements on the blockchain using Chainlink; and funds are securely segregated from the issuer in an Irish Trust managed by an independent asset manager. Founder Gijs op de Weegh stated that the assets are invested in regulated money market funds backed by short-term government bonds, minimizing counterparty risk.
The Market for Euro-Pegged Stablecoins
StablR aims to bring liquidity to both decentralized finance (DeFi) and centralized finance (CeFi) markets, with the goal of attracting more users to the crypto ecosystem. While USD-pegged stablecoins dominate the market, euro-linked alternatives have yet to gain significant traction. Data from The Block Research shows that the total supply of euro stablecoins on Ethereum is currently less than 590 million. However, op de Weegh believes that regulatory clarity in Europe, particularly with the upcoming enforcement of MiCA on July 1, will drive demand for euro stablecoins as they align with European consumers’ preferences for assets priced in euros and streamline international trade.
Hot Take: Euro Stablecoins Poised for Growth with StablR’s Entry
With its successful seed round funding, StablR is well-positioned to capitalize on the growing demand for euro stablecoins in the European region. By providing a stable and transparent euro-backed stablecoin, StablR aims to attract more users to the crypto ecosystem and bridge the liquidity gap between DeFi and CeFi markets. As regulatory clarity improves in Europe, the adoption of euro stablecoins is expected to increase, offering opportunities for streamlined payments, lending, and on-chain foreign exchange transactions. StablR’s entry into the market could mark a significant milestone in the evolution of stablecoins and their role in the global financial landscape.
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