Hot on the heels of DECTA’s recent announcement, Banking Circle has announced the launch of EURI, a bank-backed stablecoin, compliant with the Markets in Crypto Assets Regulation (MiCA).
The launch of EURI follows the implementation of the first phase of the MiCA regulation which applies to asset referenced tokens and e-money tokens from the 30 June 2024.
The MiCA regulation aims to foster the use of innovative technologies by setting a regulatory framework that covers crypto-assets (including stablecoins), crypto-assets issuers and crypto-asset service providers to protect the rights of holders in the EU.
As an EU regulation, it is directly applicable to all 27 EU member states.
EURI is the first e-money token launched by Banking Circle and the first MiCA regulated stablecoin that is issued and backed by a bank in the EU.
will first be available via Binance with more exchanges to follow.
The burning and minting of EURI is enabled by the Fireblocks Tokenization Engine and secured by its Multi-Party Computation (MPC-CMP) technology.
This announcement provides more welcome competition in the EU stablecoin market, which has historically lagged behind dollar stablecoins.
Key benefits of EURI:
Safety and security: All fiat funds received in exchange of EURI will be segregated and held in cash or cash equivalents in a bankruptcy remote structure by Banking Circle. It will be available on the Ethereum and BNB Smart Chain blockchains and subject to transaction monitoring and risk assessments for fraud identification and general risk mitigation.
Trust: EURI is fully compliant with the MiCA regulation and will be audited by a top tier auditor to ensure parity between the EURI in circulation and the cash received from holders.
Efficiency: Fiat conversion can be timely and costly, while an e-money token is the most frictionless option for fiat hedging transactions. EURI can be used for the fast and efficient settlement of other digital currency assets.
Redemption at par value: The holders of EURI have a right of redemption at any time and at par value, meaning that they can request for Banking Circle to redeem (return) the EURI at 1 EUR per 1 EURI at any given time.
“By combining cutting-edge technology for the digital asset industry and ensuring compliance with the latest European regulations, Banking Circle can provide stablecoin users with the robust banking service and infrastructure they deserve and make stablecoins accessible to a wider audience wanting 24/7 access to instant payments,” comments Daniel Lee, Head of Web 3, Banking Circle.
“The launch of EURI establishes strong foundations and functionality for Banking Circle that will enable us to launch stablecoins and tokenised money in the future, providing more choice and optionality for the market.”
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