Kraken, a leading cryptocurrency exchange, has partnered with Circle, a global financial technology company and issuer of USD Coin (USDC) and Euro Coin (EURC), to enhance the adoption and utility of these stablecoins.
Announced on September 17, 2025, this collaboration aims to deepen liquidity, reduce conversion fees, and expand access to USDC and EURC across Kraken’s platform, supporting the growth of onchain financial applications.
Kraken will increase liquidity for USDC, the second-largest U.S. dollar-pegged stablecoin with a market cap of approximately $73.5 billion, and integrate it across its suite of products, including trading, payments, and financial applications. Clients will benefit from lower conversion fees when using USDC.
Kraken will add support for EURC, Circle’s fully reserved euro-backed stablecoin, with a market cap of about $238.7M. This move caters to growing demand for euro-denominated stablecoins, especially in European markets, enabling seamless euro-based transactions for trading, cross-border payments, and DeFi applications.
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The partnership aligns with increasing regulatory clarity, particularly in jurisdictions like the EU, where Circle has secured an Electronic Money Institution (EMI) license under the Markets in Crypto-Assets (MiCA) regulation. This ensures USDC and EURC are compliant, fully reserved, and backed by transparent reserves.
Both companies aim to accelerate the responsible growth of stablecoins as core infrastructure for the internet financial system. Kraken’s Global Head of Consumer Business, Mark Greenberg, emphasized that stablecoins are “permissionless, programmable, and global by default,” aligning with crypto’s original vision.
Circle’s Chief Commercial Officer, Kash Razzaghi, highlighted the goal of building the world’s largest stablecoin network. Kraken has seen consistent growth in stablecoin demand since 2017, driven by improved regulatory frameworks and user confidence.
This partnership positions Kraken as a central hub for stablecoin-enabled finance, attracting both retail and institutional users. USDC competes with Tether’s USDT, which leads with a $171 billion market cap. EURC, while smaller, is gaining traction in Europe, supported by its MiCA compliance and multichain availability on networks like Ethereum, Solana, and Stellar.
Euro Coin (EURC) is a euro-backed stablecoin issued by Circle, designed to maintain a 1:1 peg with the euro, fully reserved with euro-denominated assets. Its adoption is driven by its utility in blockchain-based financial systems, offering a stable, digital alternative to traditional euro transactions.
What Drives EURC Adoption?
Circle’s compliance with the EU’s Markets in Crypto-Assets (MiCA) regulation, through its Electronic Money Institution (EMI) license, ensures EURC meets stringent reserve and transparency standards. This regulatory backing builds trust among users, especially in Europe, where MiCA provides a clear framework for stablecoin operations.
Transparent reserves, held in cash and highly liquid assets, further enhance user confidence, making EURC a reliable choice for institutional and retail adoption. EURC is supported on multiple blockchains, including Ethereum, Solana, Stellar, and others, enabling seamless integration into various DeFi protocols, wallets, and payment systems.
This multichain compatibility broadens its use cases, from trading to cross-border payments. For example, developers can use EURC in smart contracts for lending, remittances, or tokenized asset trading, driving adoption in decentralized applications.
EURC provides a stable, euro-denominated asset for crypto traders to hedge volatility or settle trades without converting to fiat, reducing fees and delays. EURC enables fast, low-cost cross-border euro transactions, appealing to businesses and individuals in Europe and beyond.
EURC’s programmability supports its use in DeFi platforms for lending, borrowing, and yield farming, attracting developers and users in the growing onchain economy. However, demand for euro-backed stablecoins is rising, particularly in Europe, where users seek alternatives to USD-based assets.
EURC’s stability and regulatory alignment make it appealing for European businesses and consumers navigating crypto markets. Kraken’s partnership with Circle significantly boosts EURC’s adoption by leveraging its position as a leading crypto exchange with a strong European user base.
Kraken’s decision to list EURC and deepen its liquidity ensures users can easily trade, deposit, and withdraw EURC across its platform. This accessibility encourages adoption among retail and institutional clients.
By integrating EURC into its trading and payment systems, Kraken reduces conversion costs, making it more cost-effective for users to transact in EURC compared to traditional fiat systems.
EURC will be supported across Kraken’s suite of products, including spot trading, futures, and potentially other financial services, increasing its utility and exposure. EURC competes with other euro-backed stablecoins like Tether’s EURT and Stasis EURS, though its MiCA compliance and Circle’s reputation give it an edge.
Adoption depends on outpacing competitors in liquidity and ecosystem integration. Stablecoin adoption, especially for newer assets like EURC, requires user education about its benefits over traditional fiat or other stablecoins. Kraken’s platform can help bridge this gap through user-friendly interfaces and marketing.
EURC adoption is driven by its regulatory compliance, multichain support, and utility in trading, payments, and DeFi. Kraken’s partnership with Circle amplifies this by enhancing liquidity, reducing fees, and integrating EURC into a major exchange platform, positioning it as a key player in the euro-based stablecoin market.