The US-based giant cryptocurrency exchange Coinbase announced that starting from August 28, it will initiate 1:1 conversion transactions between Euro (EUR) and the Euro-backed stablecoin EURC in supported regions of the European Union. With this move, Coinbase will offer users instant and free conversion between Euro and EURC, making it easier and more cost-effective to switch between cryptocurrencies and fiat currencies.
Coinbase Brings New Opportunities to the Crypto Ecosystem in Europe with EURC
EURC serves as a Euro-pegged version of the US dollar-backed stablecoin USDC. According to Coinbase, the value of EURC is fixed at a 1:1 ratio with the Euro and is fully compliant with the European Union’s new Markets in Crypto-Assets (MiCA) regulations. This indicates that EURC adheres to the legal and regulatory framework within the European Union.
In addition to this step, Coinbase plans to introduce a new trading pair between EURC and USDC on August 29. The existing EURC/EUR and EURC/USD trading pairs will be deactivated. These changes aim to offer a more efficient conversion and trading process between fiat and stablecoins. Coinbase emphasized that the new trading pairs will better meet users’ needs and enhance liquidity.
Moreover, Coinbase’s EURC initiative aims to offer new opportunities to cryptocurrency investors in the European Union by increasing the use of Euro-backed stablecoins in the crypto ecosystem. This move also reinforces Coinbase’s commitment to the European market and its determination to expand the services offered to users in the region.
The Rise of Euro-Backed Stablecoins
In recent years, while US dollar-backed stablecoins have dominated the cryptocurrency market, Euro-backed stablecoins have started to gain significant traction among other stablecoins.
According to data provided by The Block, Euro-backed stablecoins constitute 92% of the non-US dollar stablecoin supply on Ethereum (ETH). The data shows that Euro-pegged stablecoins have now become a significant source of liquidity in the cryptocurrency market.
