EBA Classifies Circle's USDC as Europe's First Significant Token Under MiCA

Published October 14, 2026, 21:25 UTC. Based on the European Banking Authority press release and reporting from FinanceMagnates and Cointelegraph, October 14, 2026.

The European Banking Authority has classified Circle's USDC as a significant e-money token under the Markets in Crypto-Assets Regulation, known as MiCA, making it the first of 45 e-money tokens notified in the European Union to receive the label. The EBA announced the decision on Wednesday, October 14, 2026, saying it followed its assessment of the significance criteria set out in the Regulation.

USDC is issued in the European Union by Circle Internet Financial Europe SAS and in the United States by Circle Internet Financial, LLC, according to the EBA.

Direct EBA supervision starts November 12

From November 12, 2026, USDC will be subject to the dual supervision MiCA foresees for significant e-money tokens. Direct supervisory responsibilities for own funds, reserve of assets, liquidity requirements, and recovery and redemption plans will transfer from France's Prudential Control and Resolution Authority, the ACPR, to the EBA. The ACPR, which licensed Circle as an e-money institution in July 2024, will continue supervising areas such as governance, qualifying holdings, fit and proper assessments, outsourcing and conflicts of interest. The EBA said the two authorities will work closely together to ensure a smooth transition and effective supervisory cooperation.

Under MiCA, issuers of significant e-money tokens face dual supervision by the EBA and the relevant national authority, a split the EBA said is set out in Article 117 of the Regulation. The EBA reassesses whether tokens qualify as significant every year, using indicators from Commission Delegated Regulation (EU) 2024/1506, according to the release.

First of 45 tokens to get the label

The EBA said 45 e-money tokens have been notified under MiCA across the EU, and USDC is the first one classified as significant. The label is the EU's top regulatory tier for e-money tokens, and it moves prudential oversight of the reserves backing USDC from the national level to the European level.

The significance call comes as EU-based token issuers push for regulated US dollar-pegged stablecoins in the region. Stable Mint chief executive James Bennett told Cointelegraph that Europe could not wish away dollar stablecoins but that regulators could control the safeguards and rules for issuers. AllUnity chief executive Alexander Hoeptner told Cointelegraph that for European corporates making cross-border payments globally, offering only a euro stablecoin is not enough.

The USDC numbers behind the decision

The decision hands an EU-level supervisor the reserves behind a token Circle said had $73.3 billion in circulation worldwide at the end of June, up 19 percent from a year earlier, FinanceMagnates reported. Circulation stood at $77.0 billion at the end of March before falling to $73.3 billion by the end of June, according to Circle's quarterly results. Circle cited Visa Onchain Analytics data putting USDC at 63 percent of stablecoin transaction volume in the first quarter, FinanceMagnates reported.

Cointelegraph put USDC's market capitalization at $73 billion, making it the second-largest stablecoin behind Tether's USDT at $184 billion. Tether did not seek MiCA authorization for USDT, and major regulated EU platforms delisted the token before the July 1 deadline, FinanceMagnates reported.

A US-EU supervisory bridge

To support its supervision of cross-border stablecoin activities, the EBA said it signed a memorandum of understanding with the New York State Department of Financial Services covering information exchange, mutual assistance in ongoing supervision and coordination in a crisis. The EBA announced the agreement on June 2, saying it had assessed the New York regulator's confidentiality rules as equivalent to those under MiCA, a condition for sharing confidential information, FinanceMagnates reported.

On the US side, the Office of the Comptroller of the Currency gave Circle final approval in July for a national trust bank, which will start with custody for Circle and its affiliates, FinanceMagnates reported.

Exchanges are already deepening their USDC ties. Kraken expanded support for USDC and EURC in September 2025 to cut conversion fees for its users, and Binance bought a $100 million stake in Circle in September alongside a five-year USDC agreement under which Circle pays the exchange monthly incentives tied to USDC balances, FinanceMagnates reported.

This article is news reporting and is not investment advice.

Sources

• European Banking Authority press release, October 14, 2026, primary source for the significant e-money token classification, the 45 notified EMTs, the November 12, 2026 dual supervision start, the split of duties between the EBA and the ACPR, the USDC issuer entities, the NYDFS memorandum of understanding, and the legal basis under MiCA Articles 43, 56 and 117
• FinanceMagnates, October 14, 2026, secondary source for the June 2 MoU announcement, the confidentiality equivalence assessment, the $73.3 billion June circulation figure and the $77.0 billion March figure, the 63 percent Q1 transaction volume share via Visa Onchain Analytics, the July 2024 ACPR license, the OCC national trust bank approval, Tether's lack of MiCA authorization and USDT delistings, and the Kraken and Binance USDC moves
• Cointelegraph, October 14, 2026, secondary source for the $73 billion market capitalization figure and the James Bennett and Alexander Hoeptner comments on regulated dollar stablecoins in the EU