Circle has just launched a new stablecoin on the Coinbase network, using the euro as its base currency.

Circle, the issuer of the stablecoins USDC and EURC, has expanded its reach by launching EURC on Coinbase's Ethereum Layer-2 network, Base. This marks a significant milestone for both Base and EURC, as it is the first time EURC is accessible on an Ethereum Layer-2 network. Previously, Layer-2 networks could only use a derivative form of EURC supported by versions on other networks.

Another crucial aspect of introducing EURC on Base is that Circle's US-dollar-backed stablecoin, USDC, is also available on Base. Furthermore, USDC and EURC are the only stablecoins from a major issuer that comply with the new Markets in Crypto-Assets (MiCA) regulations, aligning with the EU's comprehensive crypto-asset regulations.

This development positions Circle ahead of other stablecoin issuers, such as Tether, whose euro stablecoin EURT was delisted from Bitstamp for non-compliance with MiCA regulations.

Interestingly, this advancement will enable users to exchange their euros for dollars and vice versa. It's also notable that a 2023 study revealed that foreign exchange transactions on the blockchain could reduce costs by up to 80%. However, EURC traders on Base might still have to wait, as EURC is not yet listed on decentralized exchanges like Aerodrome, Uniswap, and BaseSwap.

This significant news follows Circle's recent milestone in the financial landscape. Earlier this month, Circle became the first stablecoin issuer to comply with MiCA regulations, as reported by CNF. This achievement allows Circle to officially offer USDC and EURC to European customers under the supervision of the French regulator ACPR.

Many analysts view this compliance as a pivotal moment in the development of digital currency. It also reflects Circle's long-term vision of leveraging blockchain technology to enable digital fiat currencies in open and interoperable networks.

Jeremy Allaire, CEO of Circle, emphasized the importance of regulatory compliance:

"Today’s announcement from Circle is a major milestone in the ongoing development of the internet financial system. One of the world’s largest economies has established clear regulations that make stablecoins legal electronic money, heralding a new phase in the crypto market’s evolution as mainstream infrastructure for payments, finance, and commerce."

Circle has further demonstrated its commitment to compliance by establishing its European headquarters in France, a country known for its robust regulatory framework. As the digital asset landscape continues to evolve, Circle plans to broaden and increase the adoption of the newly introduced EURC stablecoin.