EBA Takes Over Direct Supervision of Circle’s USDC Stablecoin
Circle's USDC becomes the first e-money token in the EU to get the 'significant' label. From November 12, the EBA supervises reserves and redemption plans directly.
The EU's banking supervisor will directly oversee USDC's reserves and recovery plans from November 12. It's the first of 45 notified e-money tokens to get that label.
The European Banking Authority (EBA) classified Circle's USDC as a significant e-money token under the EU's Markets in Crypto-Assets Regulation (MiCA) today, Finance Magnates reports. It is the first of 45 e-money tokens notified in the EU to get that label.
From November 12, the EBA will directly supervise USDC's own funds, reserve assets, liquidity and recovery and redemption plans. Those tasks move from France's ACPR, which licensed Circle as an e-money institution in July 2024. Circle said USDC had $73.3 billion in circulation worldwide at the end of June, up 19% from a year earlier.
What changes for EU platforms
Exchanges and brokers that offer USDC in the EU will now list a token whose reserves are supervised by the EBA instead of a national authority. The ACPR keeps governance, qualifying holdings, fit-and-proper assessments, outsourcing and conflicts of interest. The EBA said the two authorities would work closely for a smooth transition.
The bigger stablecoin picture
Tether's USDT did not seek MiCA authorization, and major regulated platforms delisted it before the July 1 deadline. Binance bought a $100 million stake in Circle in September under a five-year USDC agreement, while Kraken expanded USDC and EURC support to cut conversion fees. Circle cited Visa Onchain Analytics data putting USDC at 63% of stablecoin transaction volume in the first quarter. Circle's euro token EURC is issued under the same French license, but the EBA decision applies only to USDC.
Under MiCA, a token is significant when it meets at least three of seven criteria, including more than 10 million holders or reserves above EUR 5 billion. The EBA did not say which criteria USDC met.
For traders in Southeast Asia, the source does not detail local rule changes, but anyone trading USDC on EU-facing venues now deals with a token supervised by the EBA.
The takeaway: USDC is now the EU's first officially 'significant' e-money token, moving key oversight from Paris to the EBA.
Summary written by Oh Cannot from the original report by Finance Magnates. Not financial advice.
