USDC Becomes EU’s First Significant E-Money Token, With EBA Oversight Starting November 12

Key Takeaways

• The EBA has announced that EU-issued USDC is the first significant e-money token under MiCA, with dual supervision set to begin on November 12.
• The EBA manages capital, reserves, liquidity, and recovery plans.
• France’s ACPR will retain responsibility for governance and other organizational matters.

The European Banking Authority (EBA) has classified Circle’s USDC as the European Union’s first significant e-money token under the Markets in Crypto-Assets Regulation (MiCA). This brings key financial safeguards under direct European supervision from November 12, 2025.

The authority said that USDC is the first of 45 e-money tokens under EU crypto regulations to receive this classification.

The announcement was made on October 14 and applies to USDC issued by Circle Internet Financial Europe SAS. It sets out a division of responsibilities between the EBA and France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR).

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EBA Takes Responsibility for Reserves

The EBA will directly supervise the issuer’s own funds, reserve assets, liquidity requirements, and recovery and redemption plans. The ACPR currently oversees those responsibilities.

“This means that direct supervisory responsibilities in the areas of own funds, reserve of assets, liquidity requirements, and recovery and redemption plans will be transferred from the Autorité de Contrôle Prudentiel et de Résolution (ACPR) to the EBA,” said EBA.

The French regulator, ACPR, will continue overseeing areas such as governance, qualifying holdings, management suitability, outsourcing, and conflicts of interest.

“The EBA and the ACPR will work closely together to ensure a smooth transition and effective supervisory cooperation,” said EBA.

This role gives the European agency direct control over the financial safeguards backing EU-issued USDC, while national regulators continue supervising the issuer’s daily operations.

Classification Builds on Existing MiCA Authorization

The designation adds a supervisory layer to Circle’s existing European operations. In July 2024, Circle announced that an electronic money institution license from the ACPR allowed its French entity to issue USDC and euro-backed EURC under MiCA.

According to Circle’s MiCA white paper, USDC remains globally fungible, meaning tokens issued through its European and U.S. entities are interchangeable. It also states that Circle France’s minimum reserve requirement must always equal USDC holdings in the European Economic Area.

Under MiCA, an e-money token must meet at least three significance criteria: holder numbers, transaction activity, and token value. However, the EBA announcement did not specify which individual criteria USDC met.

Cross-Border Supervision Expands

The EBA also confirmed an information-sharing agreement with the New York State Department of Financial Services to support supervision of cross-border stablecoin activities.

Circle Internet Financial Europe SAS issues USDC in the EU, while Circle Internet Financial, LLC issues it in the US.

To coordinate cross-border supervision, the EBA signed an agreement with the New York State Department of Financial Services to share information and cooperate.

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