EURC (EURC) is a euro-backed stablecoin issued by the company Circle that provides a stable and regulated alternative to the euro in digital form, allowing businesses and individuals to access DeFi markets and international transfers 24/7 with a 1:1 parity.
What is EURC?
EURC is a euro stablecoin developed by Circle, the same company that issues the USD Coin (USDC). This crypto-asset operates on a fully reserved model, ensuring that every EURC token in circulation is fully backed by euros held in euro-denominated bank accounts at regulated financial institutions.
Unlike volatile crypto-assets, EURC maintains a strict 1:1 parity with the euro, meaning that one EURC token can always be exchanged for one fiat euro at Circle (small price variations may apply depending on market liquidity). This stability makes it a preferred tool for businesses and individuals looking to benefit from the advantages of blockchain while maintaining exposure to the European currency.
Circle has also obtained the necessary licenses to become an Electronic Money Institution in France, allowing EURC to comply with existing regulations including MiCA (Markets in Crypto-Assets) which will come into effect for electronic money tokens on June 30, 2024. Beyond this European license, Circle is also regulated in other countries such as the United Kingdom, the United States, and Canada.
The stablecoin is available on several major blockchains including Ethereum, Avalanche, Solana, Stellar, and Base, thus offering great flexibility of use across the DeFi ecosystem. The reserves of EURC are subject to monthly attestations performed by Deloitte, ensuring transparency and security of funds.
How does EURC work ?
EURC is a euro-collateralized stablecoin, where Circle maintains euro assets equivalent to the issued tokens to ensure stability and trust. Each EURC token is fully backed by euros or euro-denominated assets held by leading financial institutions, including liquid investments such as short-term treasury bills or certificates of deposit.
Through Circle Mint, businesses can almost instantly convert euros to EURC and vice versa, with variable fees depending on services and volumes (consult Circle for details). Individuals can access EURC through exchanges and crypto applications. Modeled on USDC, EURC’s smart contracts ensure native interoperability with DeFi protocols for FX trading, lending, and borrowing, on blockchains like Ethereum, Avalanche, Solana, Stellar, and Base.
What is the EURC token used for?
EURC meets multiple use cases in the digital financial ecosystem, serving as a bridge between traditional European finance and blockchain innovations.
Trading and foreign exchange (FX)
EURC is commonly used in DeFi for FX trading, borrowing, and lending. The token allows traders to access foreign exchange markets operating 24/7, where transactions can be settled instantly with optimal capital efficiency. This feature transforms access to traditional currency pairs.
Payment services and international transfers
EURC enables businesses to offer direct money transfers worldwide, with transfers settled in seconds. This capability competes with traditional currency sending services by providing near-instant processing speed, generally reduced transaction costs (but depending on blockchain networks), and global accessibility without banking infrastructure.
Decentralized financial services (DeFi)
In the DeFi ecosystem, EURC serves as collateral for lending protocols, a base asset for liquidity pools, a stable store of value in yield farming strategies, and a settlement currency for complex financial contracts.
EURC facilitates access to financial services in euros within the crypto-assets universe, with a strict parity of 1 EURC for 1 EUR. In France, exchanging crypto-assets for EURC typically avoids triggering a tax event, unlike a sale in traditional euros.
This specificity allows for safeguarding gains in a stable asset without leaving the crypto ecosystem, offering management flexibility without immediate taxation of capital gains. This article is not intended to provide tax advice, and it is advisable to consult a tax advisor for a personalized analysis tailored to your situation.
Key Figures
EURC shows rapid growth and increasing adoption in European and international markets. Its circulating supply reaches 168 million tokens, supported by €174.2M in reserves in June 2025. However, EURC remains far behind USDC, Circle's dollar stablecoin, whose market capitalization of $58 billion is about 236 times greater, illustrating the dominance of USD stablecoins in the global market.
Roadmap & notable partnerships
The development strategy of EURC revolves around European regulatory compliance and a robust ecosystem of technological and financial partners, reinforcing its positioning as the reference euro stablecoin.
Roadmap
Circle has anticipated the entry into force of the MiCA regulation for electronic money tokens (EMT) on June 30, 2024, by obtaining the necessary licenses to become an electronic money institution in France, thus ensuring full compliance of EURC before the complete application of the regulation. The stablecoin has adopted the official name and symbol EURC, gradually replacing "Euro Coin" and "EUROC" on applications, wallets, and block explorers, while maintaining the same contract addresses for a frictionless transition. EURC benefited from Tether's withdrawal of its EURT stablecoin in November 2024, following the implementation of MiCA, as well as the withdrawal of USDT from several European exchanges for regulatory reasons, consolidating its market leadership position in Europe. The EURC roadmap aims to capitalize on the growing demand for euro-denominated digital assets, particularly in a context of American economic uncertainties and tariff policy, reinforcing its role in financial diversification.
Partnerships
EURC is accessible via a wide network of centralized and decentralized exchanges, as well as direct purchase services facilitating its adoption. On centralized platforms, trading pairs often remain limited to major crypto-assets (BTC, ETH) and the euro, sometimes requiring a route through decentralized exchanges for more diversified liquidity.
The multi-blockchain deployment covers Ethereum, Solana, Avalanche, Base, Stellar, and Sonic since 2024. This diverse infrastructure strengthens EURC's position as a reference for European stablecoins.
Advantages and caution points
A balanced analysis of EURC reveals significant strengths as well as important considerations for potential users.
Advantages of EURC
As a stablecoin, the predictability of EURC's price makes it attractive for those looking to venture into crypto-assets without being exposed to price fluctuations. It offers a refuge against market volatility, allowing users to exchange volatile tokens for EURC to navigate fluctuations without taking their crypto-assets out of the market. EURC complies with the MiCA regulation, offering crucial legal security for European businesses, a competitive advantage in a strict regulatory environment. The reserves of EURC, protected in case of bankruptcy, are subject to monthly attestations by Deloitte & Touche LLP, with reserve composition and reports accessible to the public, ensuring total transparency. Available globally without the need for a bank account, EURC democratizes access to European financial services for a worldwide population.
Caution points
Euro stablecoins represent about 0.8% of the global stablecoin market, which can limit liquidity and arbitrage opportunities compared to dollar stablecoins. Like any centralized stablecoin, EURC is entirely dependent on Circle for issuance, redemption, and reserve management, posing a potential single point of failure. It is also important to keep in mind the existing exchange risk on the currency market between the euro and the dollar, which translates to EURC against USDC.
Outlook on EURC (EURC)
The elements presented in this analysis do not constitute investment recommendations. Each reader is invited to conduct their own research before any decisions regarding this crypto-asset. This market remains highly volatile and risky.
EURC perfectly illustrates the maturation of the European stablecoin sector in the face of increasing regulatory constraints. While it dominates the European stablecoin market, it remains largely outnumbered by dollar stablecoins, illustrating both the promising emergence of this segment and its current lack of maturity.
EURC's competitive advantage relies more on the evolution of the regulatory landscape than on any fundamental technological innovation. The strategic withdrawal of Tether and the restrictions on USDT mechanically create space that Circle effectively occupies without resolving the inherent challenges in the adoption of European stablecoins.
Liquidity remains the Achilles' heel: despite notable growth, EURC struggles to generate the necessary network effect to compete with its dollar-backed counterparts. Nonetheless, EURC remains a pragmatic solution for European players looking to navigate between crypto innovation and regulatory compliance, in a context where credible alternatives remain rare.
Never invest more than you are willing to lose. The information provided above does not constitute investment advice in any way and is provided for informational and indicative purposes only. To the fullest extent permitted by law, Deskoin disclaims any liability for any loss or damage arising from any use of this document or its content. The information is provided for general informational purposes only. It does not constitute legal, financial, or professional advice.
