The European Banking Authority (EBA) has designated USDC, the dollar stablecoin issued by Circle, as a “significant” e-money token (EMT) under the EU’s Markets in Crypto-Assets Regulation (MiCA). It is the first of the 45 e-money tokens notified in the EU to cross that threshold, according to The Block and DailyCoin, which both reported the EBA’s October 14 statement.
What changes on November 12
Under MiCA, significant tokens move partly under EU-level supervision. From November 12, 2026, the EBA will directly oversee four areas for Circle’s European issuer, Circle Internet Financial Europe SAS:
- own funds;
- reserve assets;
- liquidity requirements;
- recovery and redemption plans.
France’s prudential authority, the ACPR, which has supervised Circle’s EU entity so far, keeps responsibility for governance, qualifying holdings, fit-and-proper assessments, outsourcing and conflicts of interest. The two authorities say they will coordinate the handover.
The EBA has also signed a memorandum of understanding with the New York State Department of Financial Services, which supervises Circle’s New York-regulated operations, to share information on cross-border stablecoin activity.
What it does not change
The designation is a step up in supervision, not a sanction. It does not restrict the use of USDC in the EU, and the EBA has not announced any change to the token’s dollar peg or its function. For users and businesses, USDC remains available through MiCA-authorized service providers as before.
Why USDC, and why now
USDC has a supply of nearly $73 billion, making it the world’s second-largest stablecoin after Tether’s USDT at about $184 billion, according to The Block’s data. Unlike USDT, USDC obtained an e-money licence in France early in MiCA’s life, making it the reference dollar stablecoin for regulated European venues. Its growing role in EU payments and trading was always likely to bring it under closer scrutiny.
MiCA uses criteria such as the number of holders, the value of tokens issued, transaction volumes and the issuer’s interconnection with the financial system to decide whether a token is significant. Once one is met at scale, oversight of reserves and liquidity becomes a European matter rather than a purely national one.
What it means for the market
For banks, exchanges and fintechs building on USDC, the designation should add confidence: reserves and redemption plans will be reviewed by the EU’s banking supervisor. It also sets a precedent. Other large e-money tokens, including euro stablecoins now being prepared by bank consortia, will face the same treatment if they grow.
Swiss players are watching closely. Switzerland is not bound by MiCA, but many Crypto Valley firms serve EU clients through European entities, and stablecoin supervision in the EU is becoming a benchmark for the reforms under discussion in Bern.
