Banking Circle launches a Euro-backed stablecoin

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The MiCA Regulation, introduced in June, aims to promote the use of innovative technologies by creating a regulatory framework covering crypto assets, crypto asset issuers and crypto asset service providers in order to protect the rights of holders in the EU to protect.

Banking Circle’s EUR1 stablecoin will be available on the Ethereum and BNB Smart Chain blockchains, Eurite will initially be available on Binance, followed by AG, with other exchanges to follow. Burning and minting of EURI is enabled by Fireblocks Tokenization Engine and secured by its Multi-Party Computation (MPC-CMP) technology.

Daniel Lee, Head of Web 3, Banking Circle, comments: “By combining cutting-edge technology for the digital asset industry and ensuring compliance with the latest European regulations, Banking Circle can provide stablecoin users with the robust banking service and infrastructure that they earn and create.” Stablecoins are accessible to a wider audience who want access to instant payments 24/7.

The new token adds to growing competition in the EU stablecoin market, which has historically lagged dollar stablecoins. Banking Circle’s initiative follows Next Generation’s revival of EURT and the arrival of Australian stablecoin payments startup Stables in Europe. The banking giant Deutsche Bank is also involved by founding AllUnity, a joint initiative between DWS, Flow Traders and Galaxy Digital

The total global market capitalization of stablecoins is currently over $160 billion, of which only $280 million is accounted for by euro-pegged stablecoins. The latter is expected to grow to $15 billion in 2025, $70 billion in 2026 and over $2.5 trillion in 2029, according to Next Generation.