Highlights:
- Binance will list Eurite (EURI), the first Euro-pegged stablecoin regulated under MiCA.
- Binance offers zero trading fees for EUR/EURI and EURI/USDT until further notice.
- EURI, backed by Banking Circle, offers 1:1 redemption with EUR.
On August 26, crypto exchange Binance announced the listing of Eurite (EURI), one of the first Euro-pegged stablecoins fully regulated under the European Union’s Markets in Crypto-Assets (MiCA) regulation. EURI is a bank-backed stablecoin launched on Saturday by Luxembourg-based Banking Circle.
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The new trading pairs EUR/EURI and EURI/USDT will be available from August 28, 2024, at 10:00 UTC. Further, users can start depositing EURI stablecoin in preparation for trading, and stablecoin withdrawals will commence on August 29 at 10:00 UTC.
EURI is the first e-money token from Banking Circle and the first MiCA-regulated stablecoin issued and backed by a bank. At the launch, Banking Circle highlighted that Eurite will initially be launched on Binance, followed by CoinUT Switzerland AG, with additional exchanges to come.
Daniel Lee, Head of Web 3, Banking Circle, noted:
“The launch of EURI establishes strong foundations and functionality for Banking Circle that will enable us to launch stablecoins and tokenised money in the future, providing more choice and optionality for the market.”
Zero Trading Fee Promotion
To celebrate the launch, Binance is offering a zero-fee promotion for EUR/EURI and EURI/USDT spot and margin trading pairs. The promotion period will start on August 28, 2024, at 10:00 UTC and last until further notice. During this time, all eligible users can enjoy zero fees on the specified trading pairs. Currently, Binance only offers new trading pairs in the EU region. Countries such as Canada, Japan, Iran, the USA, and Cuba, among others, are restricted from accessing these spot trading pairs.
Binance stated that holders of Eurite have the right to redeem the stablecoin at any time and at par value. This means users can request Banking Circle to redeem 1 EURI for 1 EUR whenever they choose. The stablecoin’s burning and minting are managed by the Fireblocks Tokenization Engine, which uses secure Multi-Party Computation (MPC-CMP) technology.
Regulatory Compliance and Market Adaptation
Eurite is one of the first EURO stablecoins regulated under the new Markets in Crypto-Assets Regulation framework within the EEA. This regulatory compliance ensures alignment with EU standards, offering consumer protection, financial stability, and legal certainty.
The regulation guarantees that the EURI upholds transparency and security, which are crucial for both retail and institutional investors. Moreover, the MiCA regulation reflects a growing trend of formal recognition and oversight of crypto-assets by financial authorities. This could result in greater acceptance and integration into European financial markets.
MiCA, passed into law in May 2023, sets uniform rules for crypto asset issuers in the EU. Binance is actively adjusting its offerings to comply with these regulations, which mandate that stablecoins meet specific legal standards before trading within the EU.
In June, Uphold announced plans to delist USDT, the largest stablecoin, along with five other stablecoins for its EU customers to comply with MiCA. Additionally, Kraken revealed in May that it was considering suspending USDT as part of its compliance efforts. Meanwhile, Circle has maintained compliance by securing the first MiCA stablecoin license on July 1. However, there are concerns that the strict regulations could reduce the diversity of stablecoins in the market, potentially stifling innovation.
BREAKING NEWS: @Circle announces that USDC and EURC are now available under new EU stablecoin laws; Circle is the first global stablecoin issuer to be compliant with MiCA. Circle is now natively issuing both USDC and EURC to European customers effective July 1st.
Details… pic.twitter.com/isNBumoi3e
— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) July 1, 2024
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