Circle to launch euro-backed stablecoin

Circle, the issuer of the second-largest stablecoin by market cap, is launching a euro-backed stablecoin on June 30.

Why it matters: This will be Circle's first non-USD-based stablecoin. With a new coin now focused on Europe, the company is taking a long-awaited step toward its vision of a future where fewer currencies exist."

As we have a more interconnected world and a more internet-native world, it won't make sense to have, say, 180 currencies, right?" Circle CEO Jeremy Allaire told Lucinda back in March.

• "So our view is there will be a few really popular currencies that are tied to major sovereign economies, like the dollar economy, or the euro economy and the yuan economy or what have you. And then there'll be non-government money that's really popular as well."

Context: While most cryptocurrencies and stablecoins have struggled in recent months, Circle’s USDC stablecoin has breached new highs based on market capitalization, reaching $54.4 billion today.

• That's in part because investors who are nervous over the volatility in other crypto prices have sought to park assets in stablecoins — often choosing Circle over its rival, Tether. While bitcoin is down 54% in the last year by market cap, Circle is up 134%. Tether, meanwhile, is up 11%.
• Tether has faced its own issues, with investors concerned that the collapse of algorithmic stablecoin TerraUSD could spread to it— leading some to, again, jump to USDC.

Of note: Circle says there are just $129 million in euro-denominated stablecoins currently, making this extremely untouched ground.