USDC Becomes the First Significant Electronic Money Token in the EU

USDC from Circle has become the first stablecoin to receive the classification of a 'significant' electronic money token under MiCA – the EU Regulation on Markets in Crypto-Assets. From November 12, 2026, the token will come under the direct supervision of the European Banking Authority (EBA). Out of 45 electronic money tokens notified under MiCA, USDC is the first to achieve this status. The EBA announced the decision on October 14.

Supervision will be divided between the EBA and the French regulator ACPR. The EBA will be responsible for reserve assets, liquidity, capital requirements, recovery procedures, and redemption plans for tokens. The ACPR retains responsibility for corporate governance, outsourcing, ownership assessment, management adequacy, and conflicts of interest. The EBA stated that regulators will cooperate in the transfer of powers to ensure continuity of oversight.

The classification was assigned under Article 56 of MiCA: a token is recognized as significant if it meets at least three criteria of Article 43 – the number of holders, transaction activity, token value, and other indicators. Which specific criteria USDC met was not specified in the October 14 announcement. USDC is pegged to the US dollar and ranks second among stablecoins by market capitalization. Circle issues the token through Circle Internet Financial Europe SAS in the EU and Circle Internet Financial, LLC in the US. Through its French subsidiary, the company will issue USDC and EURC starting in 2024, having obtained an electronic money institution license from the ACPR in July 2024.

Simultaneously, the EBA confirmed an agreement with the New York State Department of Financial Services (NYDFS) – a memorandum of cooperation and information exchange on cross-border stablecoins. This complements the division of supervision under Article 117 of MiCA. Earlier, on October 12, the Financial Stability Board published a report on the cross-border risks of global stablecoins.

The classification followed requests from Circle to amend part of the MiCA rules. In early October, the company urged EU policymakers to reconsider reserve asset requirements, replacing fixed bank deposit thresholds with a liquidity reserve linkage. Circle cited the collapse of Silicon Valley Bank in 2023, when about $3.3 billion of USDC reserves were temporarily unavailable. According to the company, as of early October, only 3 out of the world's 30 largest stablecoins met the European base – USDC, EURC, and USDG.