Stablecoin issuer Circle Internet Financial has added support for the EURC stablecoin on the Solana blockchain. The stablecoin is intended to add utility to peer-to-peer transactions and European remittance corridors and may attract interest from institutions.
The company said it will also allow users to hold euro savings without using a bank. The asset is already used on the Avalanche, Ethereum, and Stellar networks.
How Solana DEX Will Boost Liquidity
Jupiter, a decentralized exchange aggregator on Solana, will help exchanges, decentralized finance (DeFi) applications, and NFT platforms embrace EURC. EURC will launch on two Jupiter foreign exchange liquidity primitives: Dynamic FX pools and FX on DLMM.
Read more: How to Buy Solana (SOL) and Everything You Need To Know
The former DeFi primitive will enable lower EURC borrowing costs and increase yields for liquidity providers (LPs), while the latter allows LPs to improve capital efficiency with lower slippage. Solana’s low fees and efficiency can help settle trades quickly.
EURC needs fast settlements to attract institutions and increase uptake. Circle recently identified Solana as the network that provided the fastest settlement for USDC, its US dollar stablecoin.
Read more: Solana vs. Ethereum: An Ultimate Comparison
Circle Could Help Institutions Adopt Stablecoins
Circle’s recently released Cross-Chain Transfer Protocol (CCTP) allows the exchange of stablecoins between different networks. This product could offer value to institutions that need crypto rails after the failure of Silvergate Capital in March.
The CCTP could attract more institutional inflows into euro stablecoins, especially when issuers comply with the new Markets-in-Crypto Assets (MiCA) laws. Stablecoin issuers under MiCA must comply with reserve rules that can lower counterparty risk. French bank Societe Generale launched a MiCA-compliant euro-backed stablecoin on Bitstamp on Dec. 6, 2023.
Fintech company Tempo France expects the volume share of euro-backed stablecoins to hit 0.5% in the next three years. ABy the end of November, they made up just 0.007% of volumes, far below their US dollar rivals. Negative interest rates have also choked euro stablecoin uptake in the European Union.
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