Yesterday, Beijing time, the European Banking Authority designated $USDC as the EU’s first significant electronic money token. Its reserves and liquidity will now be subject to direct EU-level supervision.
USDC is a US dollar stablecoin issued by Circle. In the EU, it is registered under the rules for electronic money tokens.
There are currently 45 electronic money tokens reported in the EU, and this is the first to be classified as significant. Following the designation, its own funds, asset reserves, liquidity, and redemption and recovery plans will be supervised jointly by the European Banking Authority and its existing French regulator. Matters such as governance and the suitability of major shareholders will remain under French supervision.
In the EU, USDC is issued by Circle’s European entity, while a separate US entity operates in the United States. The two regulators have also signed a memorandum of understanding to facilitate the exchange of regulatory information on cross-border stablecoins.
USDC is a US dollar stablecoin issued by Circle. In the EU, it is registered under the rules for electronic money tokens.
There are currently 45 electronic money tokens reported in the EU, and this is the first to be classified as significant. Following the designation, its own funds, asset reserves, liquidity, and redemption and recovery plans will be supervised jointly by the European Banking Authority and its existing French regulator. Matters such as governance and the suitability of major shareholders will remain under French supervision.
In the EU, USDC is issued by Circle’s European entity, while a separate US entity operates in the United States. The two regulators have also signed a memorandum of understanding to facilitate the exchange of regulatory information on cross-border stablecoins.