[DigitalToday reporter Yoonseo Lee] Fintech firm Revolut has launched its first euro-pegged stablecoin, EURR.

On Aug. 26 local time, blockchain outlet U.Today reported that Revolut has joined the ranks of fintech firms issuing their own stablecoins.

EURR is a stablecoin with its value fixed to the euro. Revolut said EURR is designed to maintain the same value as 1 euro. It aims to provide users with an additional payment option and enable digital euros to be moved on-chain.

The product move aligns with Revolut's expansion of its crypto business. Revolut introduced EURR as its first euro-based stablecoin, and eligible users can move the token more easily between cryptocurrencies, external wallets and supported blockchain networks. The company's stated "on-chain access" focuses on enabling approved users to send and receive digital euros in a blockchain-based environment.

It also disclosed the regulatory framework. Revolut launched EURR through its subsidiary Digital Assets Europe Ltd, which is regulated by the Cyprus Securities and Exchange Commission as a crypto-asset service provider under MiCA standards. Bridge Building, which is supervised by Luxembourg's Commission de Surveillance du Secteur Financier, will handle the actual issuance. The company is also a MiCA-regulated crypto-asset service provider and an electronic money institution.

From a market perspective, the launch could widen competition among euro-based stablecoins. The stablecoin market continues to expand, and Revolut's entry leads to an attempt to broaden its business scope at the intersection of the crypto ecosystem and traditional finance.

The launch also aligns with the trend in which regulatory compliance is becoming a key condition for stablecoin expansion. Revolut said its distribution entity is regulated under the MiCA framework, and the issuer also has electronic money institution status. As a result, whether EURR spreads further is expected to hinge on expanding the supported networks, user access and operational stability within Europe's regulatory environment.

We’re rolling out EURR, our first euro-backed stablecoin, in the Revolut app. pic.twitter.com/UVcns1mytF