Coinbase to Enable Conversions Between Euro and Euro-Pegged Stablecoin at 1:1

Coinbase is considering a significant decision to offer a seamless 1:1 conversion ratio between the euro and its pegged stablecoin, EURC. This is scheduled to take effect on August 20 across supported regions.

Establishing this conversion ratio aligns with Coinbase's broader strategy to improve user accessibility to stablecoins. This approach shows the exchange's commitment to the changing regulatory sector in Europe.

Update on Coinbase EURC Conversion

EURC is designed to maintain equality with the euro, similar to how USDC mirrors the U.S. dollar. Moreover, the coin complies with the European Union's newly implemented Markets in Crypto Assets (MiCA) regulation, signaling Coinbase's alignment with EU standards.

Meanwhile, Coinbase has emphasized that these conversions will be fee-free on its Advanced platform. This zero fee will make it more attractive for users to engage in stablecoin transactions.

In addition to the conversion feature, Coinbase will introduce a new EURC-USDC trading pair on August 29. This latest order book will replace the existing EURC-EUR and EURC-USD pairs. This move is strategic and aims to streamline the trading process between fiat currencies and stablecoins.

According to the exchange, these updates are intended to optimize the efficiency of trading and conversion activities.

While stablecoins pegged to the U.S. dollar dominate the market, euro-pegged stablecoins like EURC are becoming increasingly significant. They represent a substantial portion of the non-dollar stablecoin market.

Euro-pegged stablecoins account for about 92% of the supply of non-USD stablecoins on the Ethereum blockchain, as The Block's Data Dashboard reported.

This data reflects the growing importance of euro-pegged stablecoins in the broader crypto ecosystem, particularly as the EU tightens its regulatory framework under MiCA.

Circle's EURC Launch on Base

Meanwhile, Coinbase is not the only platform committing to the EURC stablecoin. On July 9, Circle announced the launch of the Euro-pegged stablecoin on the Base blockchain. This aimed to establish faster and more affordable transactions than those conducted on Ethereum and other blockchains.

As Coinbase's proprietary blockchain, Base offers an infrastructure designed to optimize transaction speed and cost, making it an attractive platform for stablecoins like EURC.

This strategic move focuses on positioning Base as a leader in the stablecoin ecosystem by offering a more seamless experience for users and businesses. This is particularly true for those looking to transact in digital euros.

Despite the potential advantages, the EURC is still in the early stages of widespread adoption. Having debuted on the crypto market barely over two years ago, EURC has experienced significant growth. It reached its market cap peak in 2022, surpassing $80 million, signaling strong initial interest.

However, the collapse of FTX sent shockwaves through the market, causing EURC's market cap to plunge below $30 million. EURC's market capitalization currently stands at approximately $57.2 million, reflecting a cautious but steady resurgence.

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