Coinbase at the Forefront with EURC: Will Allow Exchange of the Stablecoin with the Euro
The platform has announced that it will allow trading of the EURC stablecoin, which is 1:1 with the euro.
Cryptocurrency exchange platform Coinbase is at the forefront of cryptocurrency trading in the European Union by adapting to the MiCA law. The first stablecoin to receive a MiCA trading license is issued by Circle. This makes it fully legal in the Old Continent to trade this token within Coinbase.
Coinbase Remains at the Forefront of Crypto Trading
Coinbase continues to be one of the most advanced and popular platforms for users to trade cryptocurrencies. It continues to open doors in key markets without major issues due to its traditional policy of complying with regulatory laws. The same can be said about Circle. This company issues the world’s second-largest stable coin, which is pegged to the dollar. Meanwhile, after receiving a license to operate in the EU, its euro-linked version has also gained strength. In any case, Coinbase will allow users of its platform to exchange the token for the euro. The euro is the official currency of the Eurozone. This, as reported by the exchange, will be effective from next Wednesday, August 28.
This step is a milestone in the integration of cryptocurrencies into traditional markets. The latter, through the compliance with the most advanced and the most recent laws of the most important markets in the world.
EURC currently has a market capitalization of $57.28 million. There is an expectation that the company will be on the rise in terms of acceptance with its entry into circulation in the EU. As a result, there could be a significant increase in the company’s market capitalization in the months ahead.
Exchange Commissions Will Be Commission-Free
One of the most notable elements of this update, as Coinbase tries to stay ahead of the curve, has to do with commissions. For example, exchanges between EURC and the EU currency on Coinbase Advanced will be completely commission-free, according to the exchange.
This is a significant benefit for users who wish to exchange Euros for EURC and vice versa. The ability to exchange without fees removes cost barriers that could discourage the use of stablecoins.
Separately, Coinbase plans to launch a new EURC/USDC order book on August 29. In the meantime, the existing EURC/EUR and EURC/USD order books will be removed. According to the platform, these changes are designed to make conversions and trading between fiat currencies and stablecoins as efficient as possible.
Stablecoins Pegged to the Euro Gaining Ground
As a relevant fact of this news, it should be noted that the market of the stable euro currencies is gaining more and more space. They are still far below the market share of currencies linked to the U.S. dollar. However, the progress is obvious.
In the Ethereum ecosystem, tokens pegged to the euro make up 92% of the stablecoin sector, according to data from The Block portal. Obviously, this excludes USD-linked coins.
This data is a reflection of the growing interest of European users in the digitalization of their financial life for the purpose of trading cryptocurrencies. As known, crypto-denominations of fiat currencies have great advantages over their counterparts.
For example, they allow users to access markets that are available 24/7. It is worth mentioning that the impact of this move by Coinbase on the crypto world could be huge. People’s trust in this digital cryptocurrency market can be strengthened by the protection of the MiCA law.
By Leonardo Perez