EUROe Review: August 2023
Thank you for joining us for the EUROe updates for August 2023. In this edition, we feature insights from the CEO of Membrane Finance, present statistical data pertaining to EUROe's performance for the month, provide updates on various products, and discuss the ongoing expansion of the EUROe ecosystem.
The Rise of Stablecoins and the Euro's Promising Horizon The financial landscape is undergoing a seismic shift, with stablecoins emerging as a dominant force. Recent research from Bernstein projects the stablecoin market to soar from its current $125 billion to an astounding $2.8 trillion within the next five years. This growth is anticipated to be fueled by integration with consumer platforms, expanding the reach of stablecoins beyond just crypto-native platforms. But amidst this growth, a pertinent question arises: What role will the Euro play in this burgeoning market?
While the U.S. grapples with regulatory challenges around digital assets, the European Union is gearing up with the Markets in Crypto Assets (MiCA) regulation. This clear regulatory framework is poised to stimulate growth and innovation in the European stablecoin arena.
The Euro stands tall as the world's second most-held reserve currency, trailing only the U.S. dollar. As the digital asset ecosystem matures, it's conceivable that stablecoin distribution will begin to mirror the global reserve currency landscape.
Surging Market Demand:
Europe, with its vast and unified market, is on the brink of a digital revolution. As businesses and consumers delve deeper into digital assets, the appetite for EUR-denominated stablecoins, especially for intra-European transactions, is set to rise.
The Diversification Drive:
The digital asset market's growth will inevitably usher in a diversification wave. Investors and users will seek alternatives to USD-denominated assets, propelling demand for stablecoins pegged to other major currencies, prominently the Euro.
Given these dynamics, the Euro's trajectory in the stablecoin market looks promising:
Short-term (1-3 years):
We anticipate the Euro stablecoin market to claim 10-15% of the total stablecoin market share, bolstered by the supportive MiCA framework.
Medium-term (3-7 years):
As the market evolves and if the U.S. tightens its regulatory grip, the Euro's stake could burgeon to 15-30%.
Long-term (7+ years):
Reflecting the global reserve currency distribution, the Euro stablecoin might command a 20-40% market share, especially if digital asset adoption in Europe gains momentum.
The future beckons with immense opportunities. Let's navigate this exciting journey together, leveraging the strengths of the Euro and the promise of stablecoins.
– Juha Viitala, CEO, Membrane Finance
EUROe in Numbers
EUROe supply grew approximately 54% month-over-month
Accounts with EUROe on Solana crossed 250 week into launch
EUROe is available on 5 production and 7 test blockchains*
* EUROe is now available on Arbitrum One, Avalanche, Ethereum, Polygon, and Solana for production use. EUROe is also available for testing on the Arbitrum Goerli, Avalanche Fuji, Ethereum Goerli, Ethereum Sepolia, GEN-X Testnet, Polygon Mumbai, and Solana Devnet networks.
Picks from the EUROe Blog
EUROe Expands onto Solana – Along With Card Payments
EUROe’s expansion to Solana brings a native euro stablecoin to the blockchain, enabling new use cases such as foreign exchange, euro-denominated debit card payments, and blockchain-native value storage for Europeans while also ensuring compliance in anticipation of the Markets in Crypto Assets (MiCA) set to take effect in 2024.
What is MiCA?
Membrane Finance's Juuso Roinevirta and Patrik Johanssonauthored a primer to MiCA. Read it here
The EUROe ecosystem experienced significant expansion in the previous month. Below are some of the most noteworthy advancements:
Orca, a leading Solana DEX, added support for EUROe trading.
Wirex, a digital money app, now allows card payments with EUROe.
Solend, a lending and borrowing protocol, supports EUROe.
EUROe Account API launched
In May, Membrane Finance announced the launch of the EUROe Account API which allows brokers, exchanges, corporations, consultancies, and more easily on- and off-ramp money between traditional and crypto markets. Learn more about the Account API here.
Get Started with EUROe Today!
Opening a EUROe account allows you to mint and redeem EUROe natively – with zero fees. EUROe helps you navigate payments, investments, procurement, and more with ease. EUROe account can be opened by any institution or company, subject to terms. Learn more about EUROe at euroe.com or integrate EUROe into your application today by visiting dev.euroe.com
That's it for this time! Make sure to tune back next time and follow EUROe on social media to stay updated!
Data provided in this email is for informational purposes only and should not be construed as financial, tax, legal, or other advice. Receipt of this email does not constitute you a client of Membrane Finance. The data in this email were sourced from: Research by Membrane Finance. Unless otherwise noted, the data corresponds to August 31. This marketing communication has been published by Membrane Finance Oy, an EMI registered in Finland. As of the date of this marketing communication, the crypto-asset white paper has not been published, pending ESMA action. Holders of EUROe have the right of redemption against the issuer at any time and at par value. Issuer contact details: Web: euroe.com | Email: info (at) euroe (dot) com | Tel: +358 10 348 7210