- Coinbase will list support for Euro Coin (EUROC), a Euro-backed stablecoin amidst the growing attacks on stablecoins.
- EUROC will become available for trading on Coinbase in supported jurisdictions on February 27th but under the Experimental Label.
- The announcement comes amidst reports that Coinbase exceeded its expected revenues for Q4 2022.
Coinbase, America’s biggest cryptocurrency exchange, has announced that it would launch support for Euro Coin (EUROC), a Euro-backed stablecoin, in regions where trading is supported.
On Tuesday, February 21st, Coinbase announced that it would begin trading Euro Coin (EUROC), an ERC-20 token issued by Circle under the same full-reserve model as USDC on Wednesday, February 22nd, if liquidity conditions are met.
However, in the early hours of Wednesday, Coinbase adjusted its planned support for its EUROC listing, stating that trading of the stablecoin will begin in supported jurisdictions on or after 9AM PT on Monday, February 27th, if liquidity conditions are met.
Once listed, users can trade the stablecoin against EUROC-USD and EUROC-EUR pairs. Coinbase explained that because the EUROC is listed as an ERC-20 token on the Ethereum network, sending the asset to other blockchain networks may lead to losing funds.
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According to the announcement, the EUROC stablecoin will launch with the Experimental Label, designated for new or low-volume tokens on the exchange. The Label is on assets to increase Coinbase’s transparency and help customers make informed decisions.
An Alternative to Dollar-Backed Stablecoins?
Dollar-backed stablecoins, like USDC, USDT, and BUSD, have dominated since their launch. However, recently, they have come under increased scrutiny by regulators in the United States.
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Following a Wells Notice from the Securities and Exchange Commission, the New York Department of Financial Services (NYDFS) ordered Paxos, the issuer of Binance USD (BUSD), to halt the issuance of the stablecoin.
Paxos would cut ties with Binance after being forced to a $30 million settlement for breaching securities laws. With the growing threat to stablecoins, especially from the SEC, could the launch of EUROC be a move from Coinbase away from USD-backed stablecoins?
Coinbase Revenues Improve
The announcement from Coinbase came shortly after it revealed its earning report for the fourth quarter of 2022. In its report, Coinbased revealed that its revenues exceeded expectations, reporting $629 million vs. $590 million as expected.
In the same quarter, Coinbase also recorded a loss of $2.46 per share, much lower than the $2.55 loss per share analysts predicted earlier in the year.
On the Flipside
- Coinbase’s Q4 2022 declined in transaction volume, with monthly transacting users (MTUs) dropping from 8.5 million to 8.3 million.
Why You Should Care
The listing of EUROC on Coinbase expands its users’ stablecoin options as regulators turn their sight toward USD-backed stablecoins.
For more details on the attack on stablecoins, read:
SEC to Sue Paxos Over BUSD, Ordered to Stop Issuance
Read about Coinbase’s defense on staking below:
‘Staking Services Are Not Securities’: Coinbase Gearing up to Fight SEC in Court
