EURt, a stablecoin based on the euro
In a statement posted on its blog, the Bitstamp exchange platform announced the addition of a new cryptocurrency. Starting today, the exchange will list EURt, a euro-based stablecoin issued by Tether, the company behind USDT.
This means that European users of the Luxembourg-based exchange will be able to deposit, hold and trade this cryptocurrency without having to go through another stablecoin first.
The euro-pegged stablecoin, will provide a liquid, stable and trusted means of obtaining exposure to the single European currency to Bitstamp’s users⬇️https://t.co/4EWhCzavCr pic.twitter.com/wL9WKAn76J
– Tether (@Tether_to) July 21, 2021
The news was announced yesterday and for now, only EURt/EUR and EURt/USD trades are available on the exchange. For the time being, other new trading pairs including EURt have not yet been announced. However, this should be a matter of days or even hours.
Currently, Bitstamp is ranked 20th among exchanges in terms of trading volumes and 5th if only Bitcoin (BTC) is considered, according to Bitwise data.
Digging deeper – Casino Group launches France’s first euro-backed stablecoin, EUR-L
A growing role in the ecosystem
Overall, stablecoins have seen an impressive 300% growth since the beginning of the year, reaching a market capitalization of over $110 billion. In addition, their total trading volume conducted on the blockchain has now exceeded $700 billion.
“Excited by the opportunities presented by this explosive growth in stablecoins, we want to help drive the adoption of EURt, the first stablecoin denominated currency,” the statement reads.
Bitstamp clearly wants to capitalize on this craze and especially on the growing demand from European users for a stablecoin backed by their currency. Indeed, euro-based stablecoin has only a minor role in the current cryptocurrency ecosystem.
At the time of writing, the two main ones in existence are EURS and sEUR. However, they are only worth around 88 million and 120 million euros respectively. A figure that is relative to the size of thecompared to their cousins.
A step forward for the entire industry
To begin with, the ability to access a stablecoin based on the euro is a way for investors to diversify. Logically, it avoids the fluctuations and volatility of other cryptocurrencies in the market.
So of course, this also works for dollar stablecoins. However, since the beginning of the health crisis, the official European currency has proven to be more resilient than its North American cousin. Since March 2020, the euro has actually recovered 10% on the dollar.
In a second step, it’s also a step towards simplifying the use of cryptocurrencies among European investors using Bitstamp.
“Access to EURt will save users time and money without reducing their purchasing power,” said Miha Vidmar, the product manager (CPO) at Bitstamp.
In the end, this is undeniably an important step towards making cryptocurrencies easier to access for beginners, especially on the subject of conversion between the euro and the dollar.
Related News – Euro stablecoins make their way into the DeFi ecosystem
Get a recap of crypto news every Sunday And that’s it.
About the author : Lilian Aliaga
Freelance writer located between Paris and Toulouse. I want to share my passion for the world of crypto-currencies to as many people as possible. I am also interested in technical analysis and trading.
All articles by Lilian Aliaga.