EBA classifies Circle's USDC as EU's first significant e-money token under MiCA
The European Banking Authority has designated Circle's USDC as the European Union's first significant e-money token under MiCA, triggering direct European oversight of its reserves, liquidity, and capital starting November 12.
The European Banking Authority announced on Oct. 14 that it has designated Circle's USDC as the European Union's first "significant" e-money token under the Markets in Crypto-Assets regulation. USDC is the first of 45 e-money tokens notified across the EU to meet the threshold for the significant designation, as reported by Unchained and Wu Blockchain.[5][4][1]
Starting November 12, direct supervision of USDC's capital requirements, asset reserves, liquidity, and redemption and recovery plans will transfer to the EBA. France's Autorité de Contrôle Prudentiel et de Résolution will retain authority over Circle Internet Financial Europe SAS regarding governance, qualifying holdings, fit-and-proper checks, outsourcing, and conflicts of interest. The supervisory handover introduces no currency peg guarantee or new insurance, according to CryptoSlate.[5][4][7]
The EBA did not disclose which specific criteria USDC satisfied and conducts its classification reviews annually. The designation follows an Oct. 1 filing from Circle to the European Commission, in which the stablecoin issuer argued that MiCA's requirement for significant issuers to park 60% of reserves in commercial bank deposits increases exposure to banking sector credit and counterparty risks.[5]
Key facts
- The European Banking Authority designated Circle's USDC as the EU's first significant e-money token under MiCA on Oct. 14, 2026.
- USDC is the only token among 45 notified e-money tokens across the European Union to receive the significant classification.
- Beginning November 12, the EBA assumes direct oversight of USDC's capital requirements, asset reserves, liquidity, and redemption and recovery plans.
- France's ACPR retains supervisory authority over Circle Internet Financial Europe SAS for governance, qualifying holdings, fit-and-proper checks, outsourcing, and conflicts of interest.
- The EBA did not state which significance criteria USDC met or provide token size figures, and it reviews classifications annually.
- Circle submitted an Oct. 1 response to the European Commission opposing MiCA's rule requiring significant issuers to hold 60% of reserves as commercial bank deposits.
- The transition to EBA supervision provides no peg guarantee and no new insurance.
Sources · 7 sources
- CB
Coin Bureau@coinbureauPost on X ·
HUGE: Circle's USDC becomes EU’s first “significant” stablecoin under MiCA. It is the first of 45 EU e-money tokens to receive the designation from the European Banking Authority. The move follows ESMA’s call for EU-regulated crypto firms to stop offering services involving non-compliant stablecoins, including USDT.
Open source - CO
CoinDesk@CoinDeskPost on X ·
JUST IN: The European Banking Authority classifies $USDC as a significant e-money token under MiCA, the first stablecoin to receive this designation, triggering direct EBA supervision of @Circle’s EU operations from November 12. https://t.co/GEQ5uLRhee
Open source - CO
CoinMarketCap@CoinMarketCapPost on X ·
LATEST: 🇪🇺 The European Banking Authority has classified USDC as the first significant e-money token under MiCA, making it the only one of 45 EU-notified stablecoins to meet the threshold. https://t.co/QmJMYHqHnE
Open source - WB
Wu Blockchain@WuBlockchainPost on X ·
Circle's USDC Becomes EU's First "Significant" E-Money Token Under MiCA The European Banking Authority (EBA) has classified Circle's USDC as the EU's first "significant" e-money token (EMT) under MiCA, making it the first of 45 notified EMTs to receive the designation. USDC is the world's second-largest stablecoin by market capitalization. Starting November 12, USDC will face joint supervision by the EBA and France's ACPR, with the EBA directly overseeing capital, reserves, liquidity, and recovery and redemption plans, while the ACPR retains oversight of governance and other operational matters.
Open source - UN
UnchainedArticle ·
USDC’s EU Reserves and Capital Shift to EBA Supervision in MiCA’s First ‘Significant’ Call Circle’s European USDC issuer will answer to the European Banking Authority (EBA) on reserves, liquidity and capital from Nov. 12 , after the regulator deemed the dollar stablecoin a significant e-money token under MiCA, Europe’s Markets in Crypto-Assets Regulation. The EBA disclosed the decision on Oct. 14. According to the agency, 45 e-money tokens (EMTs) have been notified under MiCA across the bloc, and “USDC is the first one to be classified as being significant.” The release did not say which of MiCA’s significance criteria USDC met, and it gave no figures on the token’s size. The EBA reviews each classification once a year. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . Who Oversees What Circle’s European arm, Circle Internet Financial Europe SAS , is the token’s EU issuer and holds an electronic money institution license from France’s banking and insurance supervisor, Autorité de Contrôle Prudentiel et de Résolution , known as the ACPR . Circle, which went public in June 2025 , said in July 2024 that the French license made it the first global stablecoin issuer to comply with MiCA. Under the “dual supervision” MiCA sets for significant EMTs, the EBA will take charge of the issuer’s capital requirements, its asset reserve, its liquidity, and its plans for recovery and redemption. The ACPR keeps oversight of governance, qualifying holdings, fit-and-proper checks, outsourcing and conflicts of interest. The EBA said in its release that the two supervisors “will work closely together to ensure a smooth transition and effective supervisory cooperation.” In the U.S., USDC is issued by Circle Internet Financial, LLC . The EBA also cited a memorandum of understanding it signed with the New York State Department of Financial Services, made public in June , for sharing information on cross-border stablecoin activity. Circle’s Push on Reserve Rules The decision comes two weeks after Circle filed its response to the European Commission’s review of MiCA. In that Oct. 1 post, Circle wrote that MiCA requires EMT issuers to hold at least 30% of reserves as commercial bank deposits, a floor that rises to 60% for issuers of significant tokens. Circle said the deposit rule “increases exposure to the credit and counterparty risk of the banking sector,” and backed swapping it for a looser liquidity standard. The EBA’s release did not address the deposit requirement. Circle had not published a statement on the classification as of publication. Related Listen: DEX in the City: Why the Supreme Court’s FTC Ruling Could Rewire Crypto Regulation The post USDC’s EU Reserves and Capital Shift to EBA Supervision in MiCA’s First ‘Significant’ Call appeared first on Unchained .
Open source - TB
The Block@TheBlockCoPost on X ·
THE BLOCK: EU banking regulator has classified Circle's USDC as the bloc's first significant e-money token under MiCA. From Nov. 12, the EBA will assume direct oversight of USDC's reserves, liquidity requirements, own funds, and recovery plans. https://t.co/MuAUOEPvKS
Open source - CR
CryptoSlate@CryptoSlatePost on X ·
EU-issued USDC is MiCA’s first significant e-money token, moving its reserve and liquidity supervision to the EBA on Nov. 12. The change brings no peg guarantee or new insurance. Circle’s reserve-rule proposals remain separate. via @akibablade https://t.co/V95MPIyPou
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