TL;DR
- New FX Pool: Monerium launched a EURe/frxUSD pool on Polygon, creating a direct route between regulated euro liquidity and dollar liquidity.
- Onchain Conversion: Users can move from EURe to frxUSD through Uniswap v3, with swaps settled on the network.
- Payments Focus: Low fees, fast finality, and existing FX infrastructure support payment and treasury applications that manage multiple currencies.
Moving money between currencies is a common part of international payments, and a new integration aims to make that process more accessible onchain. Monerium has launched a EURe/frxUSD liquidity pool on Polygon, creating a direct connection between its regulated euro token and dollar-denominated liquidity. The pool is now live on Uniswap v3 and allows users to exchange the two assets without leaving the network. By bringing foreign exchange activity onchain through the blockchain, developers can build currency conversion directly into payment and treasury applications.
New Route Between Euro and Dollar Liquidity
The EURe/frxUSD pool gives Monerium customers a way to move between euros and dollars through onchain infrastructure. Monerium’s EURe is a MiCA-compliant e-money token that represents euros onchain, backed 1:1 by safeguarded euro reserves and redeemable at par. frxUSD represents the dollar side of the transaction and is a fully collateralized stablecoin backed 1:1 by cash-equivalent reserves, including tokenized U.S. Treasury funds.
The exchange mechanism operates through Uniswap v3, while Polygon handles settlement of the swap. With this structure in place, applications built on the blockchain can integrate foreign exchange functionality into services that manage payments, balances, and treasury operations.
How the Process Works
According to the announcement, an eligible Monerium customer begins by sending euros through SEPA to a named EUR IBAN. Monerium then issues EURe into the linked wallet. The customer can exchange those tokens for frxUSD through the liquidity pool. Capa, a provider of stablecoin foreign exchange and cross-border payment infrastructure, is also part of the integration.
The company is expected to help support liquidity while generating payment flows and FX activity around the new market. Because the exchange occurs on Polygon, currency conversion can take place on the same network where the transfer is settled. Polygon also serves as the foundation connecting these various components into a single workflow.
Why Polygon Fits the Model
A key reason behind the launch is the network’s efficiency. According to the announcement, Polygon offers low fees that make smaller and more frequent currency exchanges more practical. Fast finality on Polygon also allows applications to confirm completed trades within seconds.
The addition of this pool expands the growing FX ecosystem on Polygon. With frxUSD already serving as the dollar pairing in other FX pools on Polygon, developers gain a starting point for building routes into additional currencies. As more payment and treasury tools connect to Polygon, onchain FX can become a larger part of everyday money movement.
