Two types of stablecoins under MiCA
| Type | Definition in MiCA | Example of what it references |
|---|---|---|
| E-money token (EMT) | A crypto-asset that purports to maintain a stable value by referencing the value of one official currency | One euro or one US dollar |
| Asset-referenced token (ART) | A crypto-asset, not an EMT, that purports to maintain a stable value by referencing another value or right, or a combination, including one or more official currencies | A basket of currencies, gold or other assets |
Definitions from MiCA Article 3(1)(6) and (7).
Most stablecoins used for trading reference a single currency, which makes them e-money tokens under MiCA.
Who may offer stablecoins under MiCA
MiCA ties the offering of stablecoins to authorised issuers.
- E-money tokens: only an issuer authorised as a credit institution or an electronic money institution, which has notified and published a white paper, may offer an EMT to the public or seek its admission to trading in the EU; others may do so with the issuer's written consent.
- Asset-referenced tokens: only an issuer established in the EU and authorised for that purpose, or a credit institution meeting MiCA's conditions, may do so.
A stablecoin whose issuer does not meet these conditions cannot be offered or admitted to trading in the EU in the way MiCA requires, which is why some well-known stablecoins have been restricted or removed on EU platforms.
Before relying on a stablecoin, check its issuer in ESMA's register, which includes separate files for EMT and ART issuers.
Your right to redeem stablecoins under MiCA
For e-money tokens, MiCA gives holders a claim against the issuer.
- Issued at par: EMTs are issued at par value on receipt of funds.
- Redeemable at any time: on request, the issuer must redeem at par value by paying funds.
- Conditions stated: the redemption conditions must be stated prominently in the white paper.
In practice, redeeming directly with an issuer may involve conditions, so read the white paper, but the legal claim is a key difference from unregulated stablecoins.
No interest on stablecoins under MiCA
MiCA prohibits issuers of EMTs and ARTs from granting interest on them.
It also prohibits crypto-asset service providers from granting interest when providing services related to these tokens, and it treats any reward linked to how long you hold them as interest.
An offer of "yield" on a euro or dollar stablecoin from an EU-authorised firm is therefore a reason to read the terms very carefully.
Stablecoins are not bank deposits
MiCA requires white papers for EMTs and ARTs to warn that the tokens are not covered by investor compensation schemes or deposit guarantee schemes.
A stablecoin can lose its peg if the issuer's reserves or operations fail, and history includes stablecoins that collapsed entirely.
Stablecoins reduce price swings compared with other crypto-assets, but they do not remove risk.
Stablecoins and your exchange
On an exchange, stablecoins are often used as a parking place between trades or as the currency of a trading pair.
| Check | Why |
|---|---|
| Who issues the stablecoin? | The issuer must be authorised for the token to be offered under MiCA |
| Is there a white paper? | It sets out the redemption conditions and risks |
| What does the exchange do if it delists the token? | Notices and deadlines to convert or withdraw |
| Is any "reward" offered for holding it? | MiCA prohibits interest on EMTs and ARTs |
Euro stablecoins under MiCA
Because e-money tokens must be issued by banks or e-money institutions, euro-referenced tokens under MiCA come from regulated financial firms.
Their availability varies between exchanges, and the ESMA register's EMT issuer file is the place to check who issues which token.
Stablecoins under MiCA: how a stablecoin keeps its value
A fiat-referenced stablecoin aims to stay at one unit of a currency by holding reserves and allowing holders to redeem tokens for that currency.
If people trust that redemption works, the market price stays close to one euro or one dollar.
If trust weakens, for example because reserves are doubted, the price can drop below that level, which is called losing the peg.
Stablecoins under MiCA: uses on an exchange
| Use | What to keep in mind |
|---|---|
| Parking value between trades | Not a bank deposit; issuer and custody risks remain |
| Trading pairs | Prices quoted in a stablecoin are not quite the same as in euros |
| Transfers between platforms | Network and address checks still apply |
| Earning "yield" | MiCA prohibits interest on EMTs and ARTs from issuers and CASPs |
Stablecoins under MiCA: euro or dollar
A dollar stablecoin carries currency risk for someone who spends in euros, because its value in euros moves with the exchange rate.
A euro-referenced e-money token avoids that risk, but its availability and trading volume vary by exchange.
Stablecoins under MiCA: checking an issuer
- Find the issuer's name in the token's documentation or the exchange's information page.
- Check ESMA's register files for EMT or ART issuers.
- Read the white paper, including the redemption conditions.
- Be wary of tokens described as stable that have no clear issuer or reserves.
Stablecoins under MiCA: risks that remain
- Issuer failure or problems with reserves.
- Loss of the peg during market stress.
- Custody risk at the exchange where you hold the tokens.
- Smart contract or network problems for tokens on public blockchains.
Stablecoins under MiCA: rules in one table
| Rule | E-money tokens (EMTs) | Asset-referenced tokens (ARTs) |
|---|---|---|
| Reference | One official currency | Another value or right, or a combination |
| Who may offer to the public | A credit institution or e-money institution with a published white paper (others with the issuer's written consent) | An issuer authorised under Article 21 and established in the EU, or a credit institution |
| Redemption | At any time and at par value | Rules in Title III |
| Interest | Not allowed | Not allowed |
Summary of MiCA Articles 3, 16, 40, 48, 49 and 50.
Stablecoins under MiCA: the interest ban in practice
Neither issuers nor crypto-asset service providers may grant interest on EMTs or ARTs.
MiCA treats any remuneration or other benefit related to the length of time a holder keeps the token as interest.
An offer of a yearly rate simply for holding a stablecoin at an EU provider should therefore be read carefully, and asked about if it is unclear.
Stablecoins under MiCA: a checklist before holding one
- Who is the issuer, and is it authorised in the EU?
- Is there a white paper, and where is it published?
- How can you redeem, and what does it cost?
- Which currency does it reference, and what does the exchange rate mean for you?
- Is any reward offered, and how does it fit the interest ban?
Stablecoins under MiCA: questions readers ask
Can a stablecoin lose its peg? Yes; stable value is an aim, and prices on exchanges can move away from the reference, especially in stressed markets.
Why do some exchanges no longer offer certain stablecoins? Providers decide which tokens to offer, and MiCA's rules on who may issue and offer stablecoins affect those decisions.
Is a euro stablecoin the same as euros in a bank? No; it is a claim against the issuer, not a bank deposit covered by a deposit guarantee scheme.
Stablecoins under MiCA: a redemption example
Example: you hold 500 units of a euro e-money token issued by an EU e-money institution.
Under MiCA Article 49, you have a claim against the issuer and can ask to redeem the tokens at any time at par value, meaning €500.
In practice, many people sell stablecoins on an exchange instead, where the price can be slightly above or below par and trading fees apply.
Example only; the issuer's white paper describes the redemption process and any conditions.
Stablecoins under MiCA: who carries which risk
| Risk | Where it comes from |
|---|---|
| Issuer risk | The issuer's reserves and solvency |
| Provider risk | The exchange or wallet provider holding the tokens for you |
| Market risk | Exchange prices moving away from par |
| Currency risk | A dollar token changing value against the euro |
Holding stablecoins at an authorised provider reduces provider risk, but issuer, market and currency risk remain.
Spreading holdings between providers can lower provider risk further.
Frequently asked questions
What are stablecoins under MiCA?
MiCA has two types: e-money tokens, which reference one official currency, and asset-referenced tokens, which reference other values or a combination.
Can I redeem a stablecoin for euros?
For e-money tokens, MiCA gives holders a claim against the issuer and requires redemption at par value at any time on request, under the conditions in the white paper.
Why are some stablecoins not available on EU exchanges?
MiCA allows stablecoins to be offered or admitted to trading only by, or with the consent of, authorised issuers. Tokens whose issuers do not meet the conditions can be restricted.
Can I earn interest on stablecoins in the EU?
MiCA prohibits issuers and crypto-asset service providers from granting interest on e-money tokens and asset-referenced tokens.
Are stablecoins covered by deposit guarantees?
No. MiCA requires their white papers to state that they are not covered by deposit guarantee or investor compensation schemes.
Sources
- Regulation (EU) 2023/1114 (MiCA), Articles 3(1)(6)–(7), 16, 40, 48, 49, 50 and 51
- ESMA interim MiCA register: files for EMT and ART issuers
Every figure on this page is checked against the ESMA register, the exchange's own terms and fee pages or another primary source, and the sources are listed above. Editorial policy · How we rate