Coinbase, one of the leading cryptocurrency exchanges, has announced that it will add support for Euro Coin (EUROC) on the Ethereum network. This move comes as a result of Circle launching EUROC, which is a stablecoin that is backed 100% by euros held in euro-denominated banking accounts, including BNY Mellon in the U.S.
Coinbase will add support for Euro Coin (EUROC) on the Ethereum network (ERC-20 token). Do not send this asset over other networks or your funds may be lost. Inbound transfers for this asset are available on @Coinbase & @CoinbaseExch in the regions where trading is supported.
— Coinbase Assets (@CoinbaseAssets) February 21, 2023
Grant Thornton LLP issues monthly attestations of the Euro Coin reserve, which adds to the transparency of this stablecoin. However, Coinbase has cautioned its users not to send this asset over other networks as doing so could result in the loss of their funds.
Inbound transfers for EUROC are already available on Coinbase and Coinbase Exchange in the regions where trading is supported. Trading will begin on or after 9AM PT on 22 February 2023, if liquidity conditions are met. Once sufficient supply of this asset is established, trading on the EUROC-USD and EUROC-EUR trading pairs will launch in phases.
However, Coinbase has also announced that support for EUROC may be restricted in some supported jurisdictions. As a result, Coinbase will add support for EUROC with the Experimental label. The Experimental asset label is used by Coinbase to denote tradable assets that are either new to the platform or have relatively low trading volume compared to its broader crypto marketplace.
This label is meant to help customers make informed decisions and exercise caution with these assets as they come with certain risks, including price swings and canceled orders associated with lower volume and availability.
While the Experimental asset label will not impact a user’s ability to send, receive, buy, sell, and/or hold assets on Coinbase, users are encouraged to read and confirm that they understand the risks involved, such as price swings and canceled orders, before trading an experimental asset for the first time.
Coinbase’s decision to add support for EUROC is a significant move in the cryptocurrency space as it provides users with a stablecoin that is backed by a reputable financial institution. However, the Experimental label serves as a reminder that users should always exercise caution and do their due diligence before investing in any cryptocurrency.
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