Coinbase to Enable Euro-Backed EUROC Stablecoin Trading on Feb 27th

On Tuesday, February 21st, Coinbase announced it is adding support for the euro-backed stablecoin EUROC issued by Circle. The token will launch under the exchange’s “experimental asset” label and trading will begin on the 22nd.

Coinbase Is Adding Support for Euro-Pegged Stablecoin Euro Coin

On Tuesday, February 21st, Coinbase announced it is adding support for the euro-backed stablecoin Euro Coin (EUROC). The coin will be listed on the Ethereum network as an  ERC-20 token and will launch under the exchange’s “experimental asset” label.

The label is assigned to new tokens added to the exchange, as well as to those that have a low trading volume. Coinbase also warned its users not to send EUROC to other networks as it may lead to a loss of funds. 

While Coinbase initially revealed that the token will be available for trading in supported regions at 9 AM Pacific Time on February 22nd, it later provided an update explaining that the launch would be postponed until at least the 27th. The exchange stated that trading on EUROC-USD and EUROC-EUR will be launched in phases after a sufficient supply of the stablecoin is created.

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A Move Away From Dollar-Backed Stablecoins?

The addition of Circle’s euro-backed stablecoin to Coinbase comes at a particular time for dollar-pegged tokens. In the first half of February, the Binance-branded BUSD came under regulatory attack both by the SEC and the New York Department of Financial Services (NYDFS).

On February 13th, BUSD’s issuer, Paxos, received an order from the NYDFS to stop minting the stablecoin with a later report indicating that the regulators believe the company is unable to continue its offering “safely”. Around the same time, it was alleged that the order came as a result of a complaint filed by the EUROC and USDC issuer, Circle—though Binance’s CEO opined in a Twitter AMA that the rumor is untrue.

Subsequently, Paxos also revealed it had received a Wells notice from the SEC with the Commission alleging that BUSD constitutes an unregistered securities offering. As a result of the notice, Paxos allegedly discontinued its partnership with Binance, and is in talks with the watchdog. Following the regulatory offensive, Binance’s CEO Changpeng Zhao stated that, while BUSD is not a major part of his exchange’s business, the enforcement actions may have a significant bearing on the future of stablecoins in the United States.

Editorial note (February 22nd, 2023, 7:07 PM EST): A typo in the second subheading was corrected. Coinbase’s updated on when trading would open was included in the headline, as well as in the text.

Do you think the recent actions of US regulators will lead to more widespread use of non-USD stablecoins? Let us know in the comments below.