Stablecoins and MiCA: what EMTs and ARTs are and what happens to USDT in Europe

Imagine that at your town fair you swap 20 euros for tokens for the rides. Each token is worth what it says because you trust that, at the end of the afternoon, the booth will give you back your 20 euros if you don’t spend them. A stablecoin works on that same promise, except the booth is a company, the tokens live on a blockchain and the fair is global.

A stablecoin is a crypto-asset that aims to maintain a stable value by pegging it to an official currency or to other assets; in the European Union, Regulation (EU) 2023/1114 (MiCA) splits them into two categories: e-money tokens (EMTs), referenced to a single official currency, and asset-referenced tokens (ARTs), linked to any other value, right or basket. Since 30 June 2024, no one may offer the public in the EU a stablecoin of either type without authorisation. USDT, Tether’s stablecoin, does not have it, and the European securities supervisor has set a deadline that, in practice, ends on 8 January 2027.

Updated on 13 November 2026

What a stablecoin is and why MiCA treats them separately

A stablecoin aims for a token to always be worth one dollar, one euro or whatever its issuer promises; the issuer holds a reserve and commits to returning the money. If the reserve fails or the issuer goes bankrupt, the token stops being worth what it says. That is why MiCA devotes two entire titles, III and IV, to stablecoins. The official Spanish text says «ficha» where the industry says «token».

EMTs and ARTs: the two categories of stablecoins in MiCA

Article 3 of the MiCA Regulation defines the two instruments. The e-money token (EMT) is «a type of crypto-asset that purports to maintain a stable value by referencing the value of one official currency». Circle’s USDC and EURC are EMTs: one is referenced to the dollar and the other to the euro.

The asset-referenced token (ART) is a crypto-asset that is not an EMT and that purports to maintain a stable value by referencing another value or right, or a combination thereof, including one or more official currencies: for example, one tied to gold or to a basket of currencies.

According to ESMA’s interim register, updated on 11 November 2026, there is no authorised ART issuer in the EU: the entire regulated European stablecoin market is, today, made up of EMTs.

Who can issue a stablecoin in the EU

For an EMT, Article 48 requires the issuer to be a credit institution (a bank) or an electronic money institution, and to have notified and published a white paper. For an ART, Article 16 requires specific authorisation from the home country supervisor, or being a credit institution that complies with Article 17.

Reserves, redemption at par and the ban on paying interest

• Redemption at par. Article 49 requires the issuer of an EMT to redeem the token «at any time and at par value» when the holder requests it, and free of charge. If you have 100 EURC, you are entitled to 100 euros. For ARTs, Article 39 grants a permanent right of redemption against the issuer and over the reserve.
• Reserves. The funds an EMT issuer receives must be safeguarded: under Article 54, at least 30% is deposited in segregated accounts at credit institutions and the rest is invested in safe, highly liquid assets in the same reference currency.
• No interest. Articles 40 (ARTs) and 50 (EMTs) prohibit the issuer from paying interest. The ban also extends to crypto-asset service providers, and MiCA treats as interest «any remuneration or any other benefit» linked to the length of time you hold the token.

The cap on the digital dollar: 1 million transactions and 200 million euros

Article 23 establishes that, if the average daily number and value (calculated quarterly) of transactions in which an ART is used as a means of exchange within a single currency area exceed one million transactions and 200 million euros, the issuer must stop issuing and submit, within 40 working days, a plan to bring it back below those thresholds.

Article 58(3) extends that rule to EMTs denominated in a currency that is not an official currency of a Member State. In plain terms: a digital dollar such as USDC can circulate in Europe, but if it becomes a mass-use means of payment within the eurozone, the brake kicks in.

Significant stablecoins and EBA supervision

Article 43 sets out when a stablecoin is «significant»: more than ten million holders, more than 5 billion euros in issued value or reserves, more than 2.5 million transactions and 500 million euros per day, among others. For EMTs, Article 56 requires meeting at least three. From that point, the European Banking Authority (EBA) steps in.

On 14 October 2026, the EBA classified USDC as the first significant EMT in the EU, out of the 45 EMTs notified under MiCA. Since 12 November 2026, the EBA has directly supervised Circle’s reserve, own funds and liquidity, while France’s ACPR retains the rest. We covered it in The EBA now takes over supervision of USDC.

Which stablecoins are authorised in the EU

The official list is ESMA’s interim MiCA register, published as CSV files. The 11 November 2026 version includes, among others, these EMT issuers:

• Circle Internet Financial Europe SAS (France, ACPR), an electronic money institution since 1 July 2024, with USDC and EURC.
• Société Générale-Forge (France), a subsidiary of the bank Société Générale, with EURCV and USDCV.
• Traditional banks issuing their own token: Oddo BHF and CACEIS Bank in France, Banking Circle in Luxembourg and Bison Bank in Portugal.
• Paxos Issuance Europe (Finland), with EUROe and USDG, and Monerium (Iceland), with EURe.
• Qivalis (Netherlands), the joint venture of a consortium of European banks, listed with the white paper for its private digital euro, EURqi.

There is no issuer based in Spain. If a stablecoin does not appear in the register, it does not have MiCA authorisation; the guide How to check whether your exchange has a MiCA licence explains how to look it up.

What has happened to Tether’s USDT in Europe

Tether does not appear in ESMA’s register as an issuer of EMTs or ARTs, so USDT cannot be offered to the public in the EU. The withdrawal has taken place in phases.

January 2025. On 17 January, ESMA published a statement together with a European Commission Q&A. Platforms had to delist non-compliant stablecoins «as soon as possible and no later than the end of Q1 2025», with a «sell-only» regime until 31 March. Custody and transfers remained possible.

During that period, the major exchanges removed USDT pairs for users in the European Economic Area. Binance, for example, had already been restricting these coins in the EEA since 30 June 2024, according to its own announcement.

October 2026. On 8 October, ESMA published an opinion that hardens its stance. It now considers that authorised providers should not provide any service involving non-compliant stablecoins: no trading, no conversion, no custody and no transfers. Warning the customer is no longer enough.

What happens on 8 January 2027

The opinion asks national supervisors, if they detect legacy positions held by customers, to require them to be remedied «as soon as possible and, at the latest, three months after» its publication. Counting from 8 October 2026, that deadline expires on 8 January 2027. ESMA does not write that date in the document: it is the result of adding the three months.

While that orderly wind-down lasts, exchanges may only offer «residual» and temporary services: selling, converting, withdrawing, transferring or holding in custody what you already have. Your platform may set its own date, even an earlier one.

I have USDT: what can I do?

MiCA regulates issuers and service providers, and contains no rule prohibiting an individual from holding USDT. Your options:

• Sell them or convert them on your exchange into euros or an authorised stablecoin (USDC, EURC…) before the platform shuts down the service.
• Withdraw them to your own wallet, bearing in mind that EU-authorised providers should not accept them back and that converting them later will depend on platforms outside MiCA.

And outside Europe: the GENIUS Act

By contrast, on 18 July 2025 the United States passed the GENIUS Act (Public Law 119-27), its first federal framework for payment stablecoins, which requires one-to-one reserves and restricts issuance to authorised issuers.

Summary: EMT, ART and USDT

Back to the fair. MiCA requires the booth to be licensed, keep the money somewhere safe and give you back your 20 euros whenever you want. USDT is the token of a booth that has decided not to seek that permit in Europe, and the regulated booths have until January to stop exchanging it. Do you know yet which booth your tokens are at?

For the full context of the regulation, start with MiCA explained: what changes for you. On Circle and Tether, read USDC, the EU’s first significant stablecoin, and on the review of the rules, Brussels opens the debate on simplifying MiCA.

Frequently asked questions

Is it prohibited to hold USDT in Spain or the EU?

No. MiCA regulates those who issue stablecoins and those who provide services with them, not those who hold them. What changes is that EU-authorised exchanges should not offer you services involving USDT, so buying, selling or converting within the regulated circuit will become increasingly difficult.

What happens to my USDT after 8 January 2027?

That day marks the end of the three-month deadline ESMA set on 8 October 2026 for supervisors to require legacy positions to be resolved. Your exchange may convert them automatically or ask you to sell or withdraw them beforehand. Check your platform’s notices, as it may have set an earlier date.

Which dollar stablecoins can I use in Europe?

Those that appear in ESMA’s register of EMT issuers. Circle’s USDC is the best known and the first classified as significant by the EBA. Paxos (USDG) and Société Générale-Forge (USDCV) are also listed with dollar stablecoins.

Can an exchange pay me interest for holding stablecoins?

Not with MiCA-regulated stablecoins. Articles 40 and 50 prohibit issuers and service providers from granting interest or any benefit linked to the length of time you hold the token.

This content is for informational purposes only and is not investment advice.

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