Mesh opens EURC trading

Euro exposure

“Investors may choose EURC over other assets for its stability,” says Bloem. “It’s pegged to the Euro, so it offers less volatility than other investment opportunities – and a welcome hedge against ZAR volatility. EURC also provides investors with easy access to the Eurozone without holding physical Euros, giving you exposure to the currency without impacting your Single Discretionary Allowance (SDA). EURC also offers high liquidity, which means lower transaction costs and quicker conversion back to Rands.”

“EURC facilitates low-cost global transactions and adds diversification to investor portfolios with exposure to different currencies,” Bloem adds. “These benefits will certainly appeal to investors seeking a stable, liquid and flexible digital asset.”

Security through Stablecoins

Stablecoins are a central element of the Finance 3.0 world. Leading financial institutions are already using this technology for instant settlements and cross-border payments. JP Morgan Chase, for example, has used its own JPM Coin as a dollar-backed Stablecoin for internal transactions since 2019.

Stablecoins are a type of crypto token, designed to maintain their value by pegging their price to a stable asset – like a fiat currency (in EURC’s case, the Euro) or a commodity (like gold, for example). Like mZAR and USDC, EURC is a stablecoin which is redeemable for Euro on a 1 to 1 basis.

But while all Stablecoins are crypto tokens, all crypto tokens are not Stablecoins. There are several important points of difference.

And while most cryptos are unregulated, fiat-linked Stablecoins are highly regulated. “EURC is designed for stability,” Bloem explains. “It’s fully compliant with the European Union’s Markets in Crypto-Assets Regulation (MiCA), and its Euro reserves are transparently held at regulated financial institutions in the European Economic Area. Like Mesh’s mZAR, EURC publishes monthly attestations conducted by a Big 4 accounting firm, for full transparency.”

Unlike Bitcoin, which exists solely on its own network, Stablecoins operate across multiple blockchains. This allows for interoperability, seamless transfers and use across various blockchain networks, and promotes liquidity and use across DeFi platforms and ecosystems.