Circle Launches Euro-Backed Stablecoin
White Star Capital Digital Asset Fund - newsletter #87
Let’s focus on Circle
Circle is a global financial technology firm that enables businesses of all sizes to harness the power of digital currencies and public blockchains for payments, commerce and financial applications worldwide. Circle is the issuer of USD Coin (USDC), one of the fastest growing dollar digital currencies powering always-on internet-native commerce and payments.
Today, Circle's transactional services, business accounts, and platform APIs are giving rise to a new generation of financial services and commerce applications that hold the promise of raising global economic prosperity for all through the frictionless exchange of financial value.
What about Euro Coin?
Circle is launching a fully-reserved stablecoin pegged to the euro, signaling to the market that demand for crypto foreign exchange services remains high despite recent industry turmoil. Like USDC, Euro Coin is a regulated stablecoin that is fully backed by reserves — in this case, the euro. That means every EUROC token in circulation will have an equivalent euro-denominated reserve held in custody at financial institutions regulated by the United States.
EUROC stablecoin gives businesses wider access to euro liquidity, which can be used for payments, trading, lending and borrowing. EUROC will be available for trading on June 30.
Why another Stablecoin?
Stablecoins were initially conceived as a way to give crypto traders access to liquidity due to banking restrictions on digital assets. However, their utility has expanded significantly over the years. Stablecoins now serve the unbanked and underbanked populations, as well as users in countries where access to dollars is restricted due to capital controls or sanctions.
In terms of foreign exchange turnover, the euro is the second largest fiat currency in the world, according to the Bank for International Settlement (BIS). The BIS’ 2019 Triennial Central Bank Survey found that the euro was on one side of 32% of all currency trades.
Tech and Ecosystem
As an Ethereum ERC-20 standard token, Euro Coin will work broadly with ERC-20 compatible wallets, protocols and other blockchain services.
A number of ecosystem leaders will support Euro Coin at launch, including Anchorage Digital, Binance.US, Bitstamp, Compound, Curve, CYBAVO, DFX, Fireblocks, FTX, Huobi Global, Ledger, MetaMask Institutional, and Uniswap Protocol.
🔦 White Star & Portfolio Spotlight
Castle introduces its smart wallet solution for NFTs
The solution will allow for multi signature functionality and ability to purchase NFTs from multiple marketplaces.
Alex launches lend and borrow using collateral rebalancing pools
Collateral Rebalancing Pools (CRP) function to reduce risk of forced liquidations.
Superfluid passes Halborn smart contract audit
Superfluid upholds its commitment to security vulnerabilities.
🏦 Enterprises & Institutions
Opensea launches Seaport to overhaul marketplace and lower gas cost
Seaport will allow for many additional features including lower gas and ability to make global offers on NFTs.
FTX expands operations in Canada by acquiring Bitvo
FTX is acquiring Canadian crypto trading firm Bitvo following SBF expansion plans.
Crypto lender Babel Finance takes steps to improve financial situation
Babel Finance one of the largest lending companies is taking steps to improve liquidity situation.
Goldman Sachs begins trading derivates linked to Ethereum
Following in the first OTC trade, GS continues expanding its operations in the space.
Meta partners with Balenciaga and Prada to launch digital fashion marketplace
Meta continues on its expansion plans in the metaverse by enlisting luxury brands.
⚖️ Government & Regulation
Crypto bill proposes unrealized staking and mining gains should not be taxed
The Responsible Financial Innovation Act is co-sponsored by Senator Cynthia Lummis and Kristen Gillibrand.
South Korea’s 20% crypto tax delayed by two more years
South Korea initially planned to impose a 20% tax on crypto from the start of 2022, but the plan was pushed back to 2023 due to heavy backlash from investors.
UK Scraps Plan to Monitor Unhosted Digital Wallets
The United Kingdom, in stark contrast to a proposal approved in March by the European Union, will not require senders of crypto assets to collect information about recipients who use unhosted wallet addresses.
Bitpanda cryptocurrency exchange scores registration in Spain
Bitpanda have received registration as a virtual currency exchange and digital asset custody service provider in Spain.
Huobi crypto exchange wins licenses in Dubai and New Zealand as Thai affiliate closes
Major cryptocurrency trading platform Huobi continues expanding its global presence by securing new licenses in New Zealand and the United Arab Emirates.
💰 Funding & Exits
Solana NFT Marketplace Magic Eden Raises $130M, Plans Multi-Chain Expansion
The top NFT platform on Solana is a newly-minted crypto unicorn with a $1.6 billion valuation—and it’s going to add other blockchains.
Zero-knowledge proof startup zCloak Network raises $5.8 million
Startup zCloak Network, which provides zero-knowledge proofs for public blockchains, raised $5.8 million in a pre-Series A round.
Digital fashion company SKNUPS raises $3.5 million and partners with Dolce and Gabbana
Digital fashion collectibles startup SKNUPS has raised $3.5 million in pre-seed funding.
Animoca Brands Buys 80.45% Stake in Edutech Platform TinyTap
The combination of TinyTap and Animoca Brands will build a community where education content creators will genuinely own their content.
Web3 tech advisory firm ScienceMagic.Studios raises $10 million pre-seed
ScienceMagic.Studios, a firm that advises brands and talent on implementing web3 technologies, has raised $10 million in pre-seed funding.
🚀 Project Launches & Updates
Foresight Ventures launches $200M private-round crypto-asset fund
Foresight Ventures is launching the $200 million Foresight Secondary Fund I to invest in private-round crypto assets looking to access liquidity during current volatile market conditions.
Immutable launches $500 million development fund for web3 game adoption
The Ethereum Layer 2 development startup Immutable has launched a $500 million development fund to build out blockchain-based games and projects.
Alchemy Launches $25M Developer Grant Program to Fund Web3 Projects
Blockchain developer platform Alchemy is launching a $25 million grant program to support Web3 developers and startups.
🔥 Other Bits We're Excited About
Tag Heuer rolls out NFT features for smartwatches
Tag Heuer allowing customers to set the display for watches using NFTs.