Title: [Asset Technical Assessment] EURC on Arc
Author: Aave Labs
Date: 2026-09-15
Summary
Technical assessment of EURC on Arc, following the Technical Asset Listing Framework.
Overall result: 
MEDIUM
EURC is a standards compliant token backed by fiat, with a live Chainlink EURC/USD price feed on Arc and no bridge or other external route that can create its supply. The principal consideration is Circle’s privileged control, including discretionary mint allowance management and account freezes, through Cold Storage EOAs without an onchain delay. These roles are held by Circle, but there is no concentration risk since each sits on its own distinct address (see Section 3).
Technical conclusion
From a technical standpoint, EURC is eligible for listing on Arc.
Asset under review
| Field | Value |
|---|---|
| Asset | Euro Coin (EURC) |
| Target chain | Arc mainnet (chain ID 5042) |
| Token contract | 0xbEf5f6d51CB62b58e6A8f77868681825C6fe21c1 |
| Native to target chain? | Yes, issued natively on Arc by Circle |
| Aave Asset Classification (AAcA) | Stablecoin backed by fiat, with a euro peg |
EURC is Circle’s euro denominated stablecoin with six decimals. Circle issues and destroys supply on Arc, while the asset’s euro reserves are held offchain by Circle.
0. Pre-screening
EURC is an active deployment on Arc, implemented as a ZeppelinOS transparent proxy, with symbol(), name(), currency(), and version() returning EURC, EURC, EUR, and 2 respectively. It is classified as a stablecoin backed by fiat and is not in a non-approved or sanctioned category.
Rating: 
GOOD
1. ERC20 Compliance
EURC is a standard ERC20 with six decimals: transfer() and transferFrom() return a boolean, with no fee on transfer, rebasing, ERC777 or ERC1363 hooks, or flash mint. Contracts can hold and transfer EURC, subject only to the issuer’s account freeze capability, assessed in Section 3.
Rating: GOOD
2. Oracle
Arc’s EURC/USD feed uses a 24 hour heartbeat and a 0.5% deviation threshold; a separate EUR/USD feed provides an independent reference for the euro peg. The two observed values differed by 0.064%. Ethereum mainnet’s EURC/USD feed uses the same 24 hour heartbeat, with a tighter 0.3% deviation threshold.
Rating: GOOD
3. Access Control
Circle’s proxy administrator, token owner, pauser, freeze authority, and the owner of the MasterMinter contract governing the token contract at 0xbEf5f6d51CB62b58e6A8f77868681825C6fe21c1 are Cold Storage EOAs, meaning single-key addresses held in offline storage by Circle’s team, under the recorded reviewer determination. Each role sits on its own distinct address, so no single key holds more than one privileged role. No onchain timelock protects these roles: the MasterMinter owner can change minter allowances, while the pauser can halt token activity and the freeze authority has frozen 419 addresses; frozen balances cannot be seized or destroyed. Live mint allowances total 110,037.56 EURC, approximately 1.33 times supply, and the authority that sets them can increase them without delay. All of these roles are held by Circle, concentrating every privileged control over EURC in a single entity, though not in a single address.
Rating: MEDIUM → privileged controls are accepted as Cold Storage EOAs, but operate without an onchain delay and retain discretionary authority over mint capacity, transfers, and upgrades.
4. Exchange Rate and Yield
Not applicable. EURC is a stablecoin backed by fiat with no exchange rate function, rebase, or yield accrual.
Rating: 
N/A
5. Token Architecture
EURC has one canonical token contract on Arc, implemented as a beacon proxy, with mint and burn events for supply observability. Its logic contains no tx.origin authorization or delegatecall outside the proxy pattern, and privileged functions are access-controlled. The implementation is not pinned, an upgrade risk covered under Section 3, Access Control.
Rating: GOOD
6. Bridge and Cross Chain Risk
EURC is issued natively on Arc and has no bridge or external mint route into its Arc supply.
Rating: GOOD
7. Audit and Security History
The deployed implementation matches Circle’s canonical audited FiatToken V2.2 implementation except for the linked library address specific to Arc and compiler metadata. EURC uses FiatToken V2.2, so it is covered by that audit; the audit report itself has simply not been made public. The implementation has not changed since deployment, and public source verification on Arc confirms its provenance. Circle has confirmed that the report will be made public shortly after launch.
Rating: MEDIUM → the deployed implementation is covered by Circle’s FiatToken V2.2 audit, but the audit report itself is not public; Circle has confirmed it will be made public shortly after launch.
8. Dependencies
EURC depends on Circle’s offchain euro reserves, its MasterMinter control path (see Section 3), and the Chainlink price feed (see Section 2). There is no onchain proof of reserve feed, decentralised exchange, or permissionless onchain redemption path on Arc; redemption is an offchain Circle Mint process for permitted participants.
Rating: MEDIUM → value relies on offchain reserves and redemption, while Arc offers no onchain venue for conversion.
9. Summary
Findings table
Ratings in this table are plain text (Good / Medium / Critical / N/A), no icons.
| Area | Key finding | Rating |
|---|---|---|
| 0. Pre-screening | Active Arc deployment, structured as a transparent proxy and classified as a stablecoin backed by fiat with a euro peg. | Good |
| 1. ERC20 | Standard ERC20 with six decimals, no fee on transfer, rebase, hooks, or flash mint. | Good |
| 2. Oracle | Live Chainlink EURC/USD feed with eight decimals, within its 24 hour heartbeat, with an independent EUR/USD reference. | Good |
| 3. Access control | Cold Storage EOAs control upgrades, roles, pause, freezes, and discretionary mint allowances without an onchain delay; 419 addresses are frozen. | Medium |
| 4. Exchange rate / yield | Stablecoin backed by fiat with no yield or exchange rate mechanism. | N/A |
| 5. Token architecture | Single canonical beacon-proxy contract with observable mint and burn events; its unpinned implementation is covered under Section 3 access control. | Good |
| 6. Bridge and cross chain | Native issuance on Arc, with no bridge or external mint route. | Good |
| 7. Audit and security | Implementation matches Circle’s canonical audited FiatToken V2.2 code, apart from the library address specific to Arc and metadata differences, which are not covered by a reviewed report; Circle confirmed one will be made public shortly after launch. | Medium |
| 8. Dependencies | Relies on offchain reserves and redemption, with no proof of reserve feed or decentralised exchange on Arc. | Medium |
Disclaimer
Aave Labs has no formal or informal affiliation with Circle or the EURC issuer beyond this technical assessment. Aave Labs has not been compensated by Circle or any related party in connection with this work.
Copyright
Copyright and related rights waived via CC0.