Thursday, June 24, 2021
Home Latest News Altcoins The head trader of the EU company discusses that euro stablecoins are...

The head trader of the EU company discusses that euro stablecoins are tough to come by.

The crypto world does not have a major euro-pegged stablecoin yet.

On the crypto market, a variety of common US dollar-pegged stablecoins exist. According to Zahreddine Touag, co-founder and head of trading at the Paris-based market making company Woorton, Stablecoins based on the euro still exist, but are notably less liquid.

“There’s not any euro stablecoin that is very liquid,” Touag said during a Paris Blockchain Week conference panel on Thursday, noting several reasoning points. The most impactful reason: “It’s very costly to do a euro stablecoin,” he noted, adding: “The primary source of revenue for U.S. dollar coins are the interest rates when you replace the U.S. dollar because you have positive interest rates on the U.S. dollar, while in Europe those are negative, or have been negative for a long time.”

As reported, For many years amid controversy, Tether has become a popular safe coin in the crypto industry. The commodity rates as the fourth largest cryptocurrency on CoinMarketCap by market cap, with a valuation at the time of publishing of nearly $20 billion. USD Coin (USDC) and TrueUSD (TUSD) are other alternatives, with market caps in the billions and hundreds of millions, respectively.

Far less well-known are the few Euro-pegged stable coins that remain. A euro-pegged crypto asset called Stasis Euro (EURS) is included in CoinMarketCap but only holds a value of around $37 million. “The second reason also is that basically Europe is a very very small actor in this market,” Touag said of euro stablecoin difficulties. “Most of the innovation did not come mainly from Europe but we have the big players in the U.S. and in Asia,” he explained.

Touag said that compared to the newer and smaller USDC funds, Tether carries considerable liquidity and use. “That’s why even we at Woorton, we use Tether, even if we prefer to use USDC because the flow is there and the clients and the counterparties are there.” A new euro stablecoin, EURB, was recently launched by Bankhaus von der Heydt and the BVDH, a bank giant based in Europe, hosted on Stellar’s blockchain.

Subscribe to our newsletter

To be updated with all the latest news, offers and special announcements.


Please enter your comment!
Please enter your name here

- Advertisment -

Must Read