In line with the European Commission‘s Markets in Crypto Assets Regulation (MiCA), Banking Circle S.A., the tech-driven payments bank, has launched its bank-backed stablecoin, EURI.
The EURI stablecoin is the first MiCA-regulated digital asset that is issued and backed by a bank in the EU. Eurite will first be available via Binance followed by CoinUT Switzerland AG with more exchanges to follow. The burning and minting of EURI is enabled by the Fireblocks tokenisation engine and secured by its multi-party computation (MPC-CMP) technology. This Banking Circle announcement provides more welcome competition in the EU stablecoin market, which has historically lagged behind dollar stablecoins.
Daniel Lee, head of web 3, Banking Circle commented: “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.
“The launch of EURI establishes strong foundations and functionality for Banking Circle. Furthermore, it will enable us to launch stablecoins and tokenised money in the future, providing more choice and optionality for the market.”
Adjusting to MiCA
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.
Ran Goldi, SVP payments and network at Fireblocks
Ran Goldi, SVP payments and network at Fireblocks added: “As financial institutions introduce new MiCA-compliant stablecoins into the European market, it’s essential that they are leveraging enterprise-grade technology and a robust infrastructure to provide a secure, accessible, and seamless experience for users.”
Benefits of EURI
Firstly, Banking Circle has placed an emphasis on safety on security. All EURI-holder 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. EURI will be available on the Ethereum as well as the BNB Smart Chain blockchains and subject to transaction monitoring and risk assessments for fraud identification and general risk mitigation.
EURI is also 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 EURI holders.
Another benefit can be seen when transferring funds. 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.
Lastly, 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 one EUR per one EURI at any given time.
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