Banking Circle S.A., a forward-thinking payments bank, has launched EURI, a new stablecoin pegged to the Euro that is fully compliant with the newly implemented Markets in Crypto Assets Regulation (MiCA). This launch marks a significant milestone as EURI becomes the first bank-backed stablecoin regulated under MiCA in the European Union (EU).
EURI’s introduction follows the enforcement of MiCA’s initial phase, which came into effect on 30 June 2024. The regulation establishes a comprehensive framework governing crypto-assets, including stablecoins, and their issuers across all 27 EU member states. MiCA aims to enhance the adoption of innovative financial technologies while safeguarding the rights of asset holders within the EU.
Banking Circle’s EURI stands out as the first e-money token to be launched by a bank under MiCA regulations. Initially available on Binance, with plans to expand to other exchanges, EURI’s creation and redemption processes are powered by Fireblocks’ Tokenization Engine and its secure Multi-Party Computation (MPC-CMP) technology.
EURI offers several key advantages:
- Safety and Security: Banking Circle ensures that all fiat funds exchanged for EURI are segregated and held in cash or cash equivalents within a bankruptcy-remote structure. EURI will be available on both the Ethereum and BNB Smart Chain blockchains, with ongoing transaction monitoring and risk assessments to prevent fraud and mitigate risks.
- Trust: Fully compliant with MiCA regulations, EURI will undergo audits by a top-tier auditor to ensure the stablecoin in circulation is matched by the equivalent cash held by Banking Circle.
- Efficiency: EURI provides a cost-effective and swift alternative for fiat conversion, particularly useful for hedging transactions and the settlement of digital currency assets.
- Redemption at Par Value: EURI holders are entitled to redeem their stablecoins at par value at any time, ensuring 1 EURI is always exchangeable for 1 EUR.
Daniel Lee, Head of Web3 at Banking Circle, highlighted the significance of this launch: “By merging cutting-edge digital asset technology with strict adherence to European regulations, Banking Circle is delivering a robust banking service that broadens the accessibility of stablecoins. This launch lays the groundwork for future innovations in stablecoins and tokenised money.”
Ran Goldi, SVP Payments and Network at Fireblocks, echoed the importance of such initiatives: “As financial institutions bring MiCA-compliant stablecoins to the European market, leveraging enterprise-grade technology and solid infrastructure is crucial for ensuring a secure and seamless user experience.”
The launch of EURI is expected to invigorate the EU stablecoin market, which has traditionally lagged behind its dollar-pegged counterparts, offering a new, reliable option for users seeking 24/7 access to digital currency.
