Stablecoin issuer Circle is expanding its reach by launching its MiCA-compliant euro-backed stablecoin on the layer-2 chain, Base.

Circle is introducing its regulated stablecoin, pegged 1:1 to the euro (EURC), on Coinbase‘s layer-2 network, Base. This move aims to strengthen Circle’s market presence amid the implementation of Europe’s Markets in Crypto-Assets Regulation (MiCA).

In a recent announcement on social media, Circle highlighted that Euro Coin (EURC) will join its other stablecoin, USD Coin (USDC), on Base. USDC has already become the largest stablecoin on Base with over $3 billion in circulation. Additionally, blockchain developers can access EURC on Base through Circle’s Testnet Faucet on Base’s test network, Sepolia.

1/ 🥁 … $EURC is coming to @base! We’re excited to bring EURC to Base, its first euro-backed stablecoin, enabling developers to deliver faster and cheaper commerce with a euro-backed digital currency for global users.

Circle’s latest move seems to be a strategic effort to maximize exposure amid Europe’s regulatory shift. Analysts at blockchain analytics firms have noted that Circle appears to benefit significantly from MiCA regulations, which target the crypto market and stablecoins specifically.

Following MiCA’s implementation, Circle’s USDC has seen notable increases in daily trading volumes. Major crypto exchanges such as Binance, Bitstamp, Kraken, and OKX have started delisting non-compliant stablecoins for their European customers. This has opened the door for more regulated entities like Circle to dominate the market. There is also ongoing speculation about the future of Tether in Europe.

Beyond market expansion, Circle’s product development aligns with its efforts to strengthen its reputational and financial standing. The company is preparing for an upcoming initial public offering (IPO). Initially aiming for a public listing in July 2021, the Boston-based company later pursued a new deal with Concord Acquisition Corp. in 2022, valuing it at $9 billion. However, the anticipated SPAC deal did not materialize due to the U.S. Securities and Exchange Commission’s (SEC) refusal to approve the filing. The exact timing of Circle’s next IPO attempt remains unclear.

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