# How EURC works: a guide for businesses
EURC is a euro token that Circle issues and redeems one for one, as an e-money token under MiCA. Each one is a balance in a smart contract, so it moves in minutes, at weekends too, and can't be reversed. It's a claim on Circle, not a bank deposit, and far less liquid than USDC.
By Pavel Skalin, Founder & CEO, Align · Updated 14 November 2026 · 5 min read · https://alignlabs.dev/guides/how-eurc-works
## Key takeaways
1. EURC is Circle's euro stablecoin: a token that Circle issues and redeems one for one for euros. Each one is a balance in a smart contract on a public blockchain, not a coin and not a bank deposit.
2. It's issued in the EU by Circle Internet Financial Europe SAS, an e-money institution authorized by France's ACPR, as an e-money token under MiCA. Circle publishes monthly attestation reports on its euro reserves.
3. EURC is small: about 434 million in circulation on 29 October 2026, and euro stablecoins are around 0.3% of the stablecoin market. It's on fewer networks and exchanges than USDC, and large conversions can move its price.
4. Only Circle can create or burn EURC, blacklist an address or pause the contract. Anyone can send it, including at weekends, and a confirmed payment can't be reversed.
5. EURC fits a business whose revenue and costs are in euros. It pays no interest: MiCA bans issuers and providers from granting it.
import { TokenStack } from "@/app/components/token-explainer/TokenStack";
import { PaymentPath } from "@/app/components/token-explainer/PaymentPath";
import { FeeFigures } from "@/app/components/token-explainer/FeeFigures";
## The short answer
EURC is a euro stablecoin: a token that Circle issues and promises to redeem one for one for euros. On each blockchain it runs on, a smart contract keeps a ledger of which address holds how much, and sending EURC changes two lines in that ledger. Circle issues it in the EU under MiCA and holds euro reserves behind it.
For a business that earns and spends euros, that means euro payments that settle in minutes, at weekends too, without converting to dollars and back. But EURC is a claim on Circle rather than a bank deposit, Circle can freeze it, and it's a small token: fewer counterparties hold it, and fewer networks carry it.
## The five layers of a EURC
Every EURC your company holds depends on five things. Scroll through them in order, from the token you see down to the reserves behind it.
## Follow one EURC payment
A customer pays your company 10,000 EURC for an invoice. Here's every hand the payment passes through, and what to check at each one.
## Getting EURC directly from Circle
Circle's developer documentation says qualified businesses can apply for a Circle Mint account to convert euros to and from EURC. Below that level, companies buy and sell EURC through an exchange or a payments provider, which set their own prices.
## The rules EURC follows in the EU
- **Reserves.** Under MiCA's Article 54, an e-money token issuer must keep at least 30% of the funds it receives in separate accounts at credit institutions, and invest the rest in highly liquid, low-risk instruments in the same currency.
- **Redemption at par.** Under Article 49, holders have the right to redeem an e-money token at any time, at par value. In practice, most businesses redeem through a provider or an exchange rather than with Circle directly.
- **No interest.** Article 50 bans issuers, and crypto-asset service providers, from granting interest on e-money tokens.
MiCA regulates issuers and providers, not holders. For which stablecoins EU providers can still offer, see [is USDT MiCA compliant?](https://alignlabs.dev/guides/cash-out-usdt-to-eur-after-mica)
## EURC vs USDC
| | EURC | USDC |
|---|---|---|
| Redeemable for | Euros | US dollars |
| Issuer in the EU | Circle Internet Financial Europe SAS, authorized by the ACPR | The same entity |
| Status under MiCA | E-money token | E-money token; classified as significant by the EBA in October 2026 |
| In circulation | About 434 million EURC (29 October 2026) | About $71.4 billion (2 November 2026) |
| Networks | Nine, according to Circle | Many more |
Choose by currency: EURC for euro business, USDC for dollar business. The euro stablecoin market is small: on 2 November 2026, DefiLlama counted about 846 million euros of euro stablecoins against about $299 billion of dollar ones, and EURC was about 60% of the euro market. For the full comparison, see [EURC vs USDC](https://alignlabs.dev/guides/eurc-vs-usdc) and [how USDC works](https://alignlabs.dev/guides/how-usdc-works).
## Five risks, and how to manage them
| Risk | What can happen | What to do |
|---|---|---|
| Wrong network | Tokens arrive on a chain your wallet doesn't watch, and EURC is on far fewer chains than USDC | Agree the network before you invoice and ask for a small test payment. If it's already happened, see [sent stablecoins to the wrong network](https://alignlabs.dev/guides/sent-usdt-to-wrong-network) |
| Liquidity | Converting a large amount of EURC on the open market moves the price more than the same amount of USDC | Convert through a provider or Circle Mint, and in planned amounts |
| Acceptance | Fewer exchanges, wallets and payment providers support EURC | Check that your customers can send it before you offer it on invoices |
| Frozen funds | Circle blacklists an address, and its balance can't move | Know who pays you and record each sending address. See [why stablecoins get frozen](https://alignlabs.dev/guides/why-usdt-usdc-get-frozen) |
| Currency | If your costs are in dollars, a euro balance moves with the exchange rate | Hold EURC for euro costs, and convert in planned amounts |
## How Align handles EURC
Align lets your company hold EURC, plus USDC and USDT, next to balances in USD, EUR, GBP and AED, in a [stablecoin business account](https://alignlabs.dev/accounts/stablecoin-business-account).
- **Deposits:** EURC on Ethereum, Base or Solana, from a wallet or exchange account your company owns. Each network has its own deposit address.
- **Payments from customers:** if you want customers to pay you in EURC directly, [ask Align first](https://alignlabs.dev/contact), before you put an Align deposit address on an invoice.
- **Paying out:** convert EURC and pay euros over SEPA and SEPA Instant from a [named EUR IBAN](https://alignlabs.dev/accounts/eur-iban-business-account) in your company's name, or pay dollars, pounds or dirhams from named USD, GBP and AED accounts. Pricing is quoted on request, and [EURC to EUR](https://alignlabs.dev/convert/eurc-to-eur) shows today's market rate and the steps.
Align isn't a bank, and your balances aren't bank deposits or covered by deposit insurance. Align is registered with FINTRAC in Canada as a money services business. It isn't authorized under MiCA, and this guide is not an offer of crypto-asset services in the EU.
## Sources
- Circle, [EURC overview](https://developers.circle.com/stablecoins/what-is-eurc) and [EURC contract addresses](https://developers.circle.com/stablecoins/eurc-contract-addresses) (accessed 9 November 2026)
- Circle, [EURC](https://www.circle.com/eurc), [Transparency](https://www.circle.com/transparency) and [Circle Mint](https://www.circle.com/circle-mint) (accessed November 2026)
- Circle, [MiCA EURC white paper](https://www.circle.com/legal/mica-eurc-whitepaper)
- Etherscan, [EURC contract on Ethereum](https://etherscan.io/token/0x1abaea1f7c830bd89acc67ec4af516284b1bc33c#code): six decimals; the FiatTokenV2_2 implementation, shared with USDC, with mint, burn, blacklist, pause and configureMinter functions (accessed 9 November 2026)
- Regulation (EU) 2023/1114, [Markets in Crypto-Assets (MiCA)](https://eur-lex.europa.eu/eli/reg/2023/1114/oj/eng), Articles 49, 50 and 54
- European Banking Authority, [USDC classified as the first significant e-money token in the EU](https://www.eba.europa.eu/publications-and-media/press-releases/eba-classifies-usdc-first-significant-e-money-token-european-union) (14 October 2026)
- DefiLlama, [Stablecoins](https://defillama.com/stablecoins) and [EURC](https://defillama.com/stablecoin/eurc) (2 November 2026)
## Common questions
### Is EURC MiCA compliant?
Yes. EURC is issued by Circle Internet Financial Europe SAS, an electronic money institution authorized by France's ACPR, and qualifies as an e-money token under MiCA. Circle's documentation describes EURC as compliant with MiCA.
### Is EURC the same as euros in a bank account?
No. EURC is a claim on Circle, not on a bank, and it isn't covered by deposit guarantee schemes. Circle says it's backed 100% by euro-denominated reserves, and under MiCA holders can redeem it at par value at any time.
### Which networks is EURC on?
Circle lists EURC contracts on Arc, Avalanche, Base, Cronos, Ethereum, Plasma, Solana, Stellar and World Chain. Align accepts EURC on Ethereum, Base and Solana. Always check which network your counterparty uses before sending.
### Can my company redeem EURC with Circle directly?
Qualified businesses can apply for a Circle Mint account, which converts euros to and from EURC. Most companies convert through an exchange or a payments provider instead.
### Does EURC pay interest?
No. MiCA's Article 50 bans issuers of e-money tokens, and crypto-asset service providers providing services related to them, from granting interest. Circle keeps any return on the reserves.
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This guide is general information, not legal, tax or financial advice. Rules and providers' terms change; check the sources linked above and take advice on your own situation.
## Related guides
- [EURC vs USDC: when a business should hold euros on chain instead of dollars](https://alignlabs.dev/guides/eurc-vs-usdc)
- [How USDC works: a guide for businesses](https://alignlabs.dev/guides/how-usdc-works)
- [Is USDT MiCA compliant? What EU businesses holding USDT can do now](https://alignlabs.dev/guides/cash-out-usdt-to-eur-after-mica)
- [EUR IBAN for EU and non-EU companies](https://alignlabs.dev/accounts/eur-iban-business-account)