The XRP Ledger (XRPL) community has welcomed a new stablecoin to the blockchain. This time, it's via GateHub, which is launching a new euro-pegged stablecoin for blockchain payments that links the blockchain to the traditional European banking network.
As announced in a press release on Nov. 5, GateHub partnered with Slovenian financial services company Dinaro to launch GateHub Euro (EURGH), a MiCA-compliant (European Union's Markets in Crypto-Assets Regulation) stablecoin pegged to the euro.
The new stablecoin operates on both the XRP Ledger and Xahau, an alternative blockchain in the larger XRPL ecosystem with smart contract capabilities.
Part of the significance of EURGH is its SEPA (Single Euro Payments Area) integration. With this, GateHub users can make instant euro payments from their XRPL and Xahau wallets to banks in Europe.
GateHub notes that these transactions can take just seconds to complete, linking blockchain assets to the traditional banking world.
What Is GateHub Euro (EURGH)?
GateHub Euro is a stablecoin that is designed to maintain a value of exactly one euro. This means 1 EURGH should equal âŹ1. It is an electronic money token (EMT) under the EU's MiCA regulations.
GateHub Euro is issued by Dinaro, which is an authorized electronic money institution regulated by the Bank of Slovenia.
According to Dinaro's published terms, it will issue EURGH on a 1:1 basis when it receives Euro funds. Holders of the token will be able to redeem EURGH for Euros at face value (subject to proper checks and compliance procedures).
GateHub users can access traditional European payment systems via their digital wallets because of the SEPA integration. This is an alternative to traditional crypto exchanges for converting funds into the traditional banking network.
GateHub Euro is not the first euro-pegged stablecoin to emerge in the crypto space or on the XRP Ledger.
For instance, there's the MiCA-compliant euro stablecoin EURĂP from Schuman Financial.
Meanwhile, there's Circle's EURC, which is a euro-pegged stablecoin for payments and trading on multiple blockchains.
And there's EUR CoinVertible (EURCV) from Société Générale-FORGE, a digital asset business unit of French banking giant Société Générale.
