EU's banking authority classifies USDC as first significant stablecoin
USDC becomes the EU's first 'significant' stablecoin
The European Banking Authority (EBA) said on October 14, 2026, that it has classified Circle's USDC as the European Union's first significant e-money token. The move triggers stricter capital, reserve and liquidity rules for the dollar-pegged stablecoin under the EU's crypto law known as MiCA.
The EBA sets November 12 as the date when financial supervisory duties transfer from France's ACPR to the EBA. The French regulator keeps responsibility for governance and other corporate matters. USDC is the first of 45 e-money tokens notified under MiCA to receive the "significant" label.
Key details of the designation
- Circle Internet Financial Europe SAS is the EU issuer affected by the new supervision.
- The arrangement is dual supervision: the EBA oversees financial safeguards, while the ACPR retains governance and corporate oversight.
- The EBA's information-sharing agreement with the New York State Department of Financial Services will support cross-border coordination.
What the EBA requires going forward
Under MiCA's Article 58, significant e-money token issuers must meet separate financial requirements:
- Capital: Regulatory capital of at least 3% of average reserve assets. The EBA can require more capital after risk assessments or stress tests.
- Reserves: Reserve assets must be legally and operationally separated from the issuer's own finances. Investments are limited to highly liquid instruments with minimal market, credit and concentration risk. Independent reserve audits are required every six months, starting from the classification decision.
- Liquidity: The issuer must maintain a liquidity-management policy designed to meet redemption requests, including under stress, and conduct regular liquidity stress tests. The EBA can strengthen liquidity requirements based on test results.
EU stablecoin holders and their rights
MiCA already gives holders of e-money tokens a claim against the issuer and the right to redeem tokens at their stated value. The significant-status designation does not turn USDC into a bank deposit: e-money tokens remain outside EU deposit-guarantee schemes, the EBA said.
Circle launched MiCA-compliant issuance through its French entity in July 2024 after securing an electronic money institution license from the ACPR.
What is still unclear
The EU technical rules give national authorities up to six months after notifying an issuer of its adjustment timetable to complete capital adjustments. The EBA announcement did not specify Circle's individual capital deadline.
What happens next
The EBA's financial supervisory responsibilities begin on November 12. Circle's issuer will then report to the EBA under the new framework. Quarterly reporting under MiCA covers token holders, reserve size and transaction activity.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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