Banking Circle has introduced a new MiCA-compliant stablecoin to the European market.
Launched in June, the MiCA regulation aims to promote the use of innovative technologies by establishing a regulatory framework that encompasses crypto-assets, issuers, and service providers to safeguard the rights of holders within the EU.
Banking Circle’s Euro-pegged stablecoin will leverage blockchain technology to provide 24/7 access to digital currency, enabling out-of-hours settlements. Available on the Ethereum and BNB Smart Chain blockchains, Eurite will initially be offered through Binance and soon through AG, with additional exchanges to follow. The burning and minting of EURI is facilitated by the Fireblocks Tokenization Engine and secured through Multi-Party Computation (MPC-CMP) technology.
Daniel Lee, head of Web 3 at Banking Circle, stated, “By integrating advanced technology for the digital asset sector and ensuring compliance with the latest European regulations, Banking Circle can deliver a robust banking service and infrastructure to stablecoin users, making instant payments accessible around the clock to a broader audience.”
This new token enhances competition within the EU stablecoin market, which has traditionally lagged behind dollar-pegged stablecoins. Banking Circle’s initiative follows the revival of EURT by Next Generation and the entry of Australian stablecoin payment startup Stables into Europe. Additionally, Deutsche Bank is participating in this space with its creation of AllUnity, a collaborative venture involving DWS, Flow Traders, and Galaxy Digital.
Currently, the global stablecoin market capitalization exceeds $160 billion, while euro-pegged stablecoins account for just around $280 million. However, projections suggest that euro-pegged stablecoins could grow to $15 billion by 2025, $70 billion by 2026, and surpass $2.5 trillion by 2029, according to data from Next Generation.