The EU’s banking watchdog has designated Circle’s stablecoin USDC as the region’s first significant e-money token under Markets in Crypto-Assets Regulation (MiCA). The EBA will take charge of particular aspects of the stablecoin’s financial operations from November 12, following an announcement on October 14, 2026.
It will supervise Circle in terms of USDC’s reserves, liquidity, financial resources and plans for recovery and redemption. France’s banking regulator will continue to oversee other aspects of the Circle entity’s operations in Europe. The measure is intended to enhance oversight of the stablecoin and ensure that its issuer is able to meet its financial obligations.
USDC is a stablecoin issued by Circle. A stablecoin is a type of cryptocurrency that is designed to maintain a stable value by being pegged to an asset such as the US dollar. In the case of USDC, the stablecoin is designed to maintain a value of $1 per token.
Source: eba.europa.eu
The EBA says that 45 e-money tokens have been notified in accordance with the MiCA framework, but that USDC is the first one to receive the significant-token designation. The designation means that the token will be subject to additional scrutiny because of its significance in the market.
From November 12, the EBA will check that Circle Internet Financial Europe SAS adheres to rules regarding its financial resources, reserve assets and liquidity. It will also oversee its recovery and redemption plans. These requirements are designed to ensure that the issuer has sufficient suitable assets and resources in place to meet its liabilities in the event of a redemption request by users.
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
— CoinMarketCap (@CoinMarketCap) October 15, 2026
However, the EBA will not take over complete supervision of Circle’s operations. France’s ACPR will continue to supervise other aspects, including corporate governance, management suitability, ownership interests, outsourcing and conflicts of interest. The two authorities will also collaborate and share information when appropriate.
The EBA has also signed a memorandum of understanding with the New York State Department of Financial Services (NYDFS). The agreement is intended to facilitate collaboration between the authorities in relation to stablecoin activities in Europe and the United States.
Previously, Circle had been granted permission to issue stablecoins in Europe. Its French subsidiary was awarded an electronic money institution licence by the ACPR in July 2024, enabling it to issue USDC and EURC, the latter being a stablecoin backed by the euro. The latest decision does not provide Circle with a new licence authority – rather, it introduces additional supervision measures because USDC has been designated as a significant token.
In the meantime, the developments come as Circle pushes for changes to some of the rules in Europe relating to stablecoins. Earlier this month, the company’s representatives called on policymakers to reconsider rules relating to the proportion of stablecoin reserves that issuers are required to hold in the form of deposits at banks. Circle is concerned that such requirements could expose issuers to risk if their banking partners were to face financial difficulties.
The company cited the collapse of Silicon Valley Bank in the United States in 2023, which resulted in roughly $3.3 billion of USDC reserves being temporarily inaccessible. Circle wishes to revise reserve rules to focus more on liquidity and less on bank deposits. However, the EBA’s latest decision does not change the rules or adopt the company’s position.
The new arrangement represents an important step in the European Union’s approach to stablecoin oversight. For Circle, it means enhanced scrutiny of USDC’s financial safeguards, as well as continued oversight of its other business operations by French authorities. The EBA will also assess other e-money tokens to determine their eligibility for significant-token designation in the future.
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