--- title: Stablecoins, Euro Stablecoins & MiCA | Digital Euro Association description: Learn how stablecoins work, how euro stablecoins differ from CBDCs, and how MiCA applies. Explore DEA research, the Stablecoin Committee and MiCAR Tracker. --- [![DEA LOGO-3-1](https://digital-euro-association.de/hs-fs/hubfs/DEA%20LOGO-3-1.png?width=160&height=111&name=DEA%20LOGO-3-1.png "DEA LOGO-3-1")](https://home.digital-euro-association.de/en?hsLang=en) [![DEA LOGO-3-1](https://digital-euro-association.de/hs-fs/hubfs/DEA%20LOGO-3-1.png?width=140&height=97&name=DEA%20LOGO-3-1.png "DEA LOGO-3-1")](https://home.digital-euro-association.de/en?hsLang=en) - [Home](https://digital-euro-association.de) - Topics - [CBDC Resources](https://digital-euro-association.de/cbdc-resources) - [DEA Position Statement](https://digital-euro-association.de/dea-position-statement) - Projects - [Digital Euro Conference](https://digital-euro-conference.de/) - [Digital Money Academy on CBDCs](https://digital-euro-association.de/digital-money-academy-cbdcs) - [Digital Money Academy on Stablecoins](https://digital-euro-association.de/digital-money-academy-stablecoins) - [Events](https://digital-euro-association.de/events) - [Podcast](https://digital-euro-association.de/podcast) - [MiCAR Tracker](https://micatracker.digital-euro-association.de/) - [Quarterly Insights](https://digital-euro-association.de/quarterly-insights) - Engagements - [Public Affairs](https://digital-euro-association.de/public-affairs) - [Member Briefs](https://digital-euro-association.de/dea-member-briefs) - [Brussels Meetings](https://digital-euro-association.de/brussels-meetings) - [Research](https://digital-euro-association.de/research) - [Working Groups](https://digital-euro-association.de/working-groups) - [Stablecoin Committee](https://digital-euro-association.de/stablecoin-committee) - [CBDC Manifesto](https://digital-euro-association.de/cbdc-manifesto) - Community - [Core Team](https://digital-euro-association.de/core-team) - [Institutional Members](https://digital-euro-association.de/members) - [Experts](https://digital-euro-association.de/experts) - [Expert Overview](https://digital-euro-association.de/experts) - [Job Portal](https://digital-euro-association.de/vacancies) - [Blog](https://digital-euro-association.de/blog) More results [Join now](mailto:team@digital-euro-association.de) [Join Now](mailto:team@digital-euro-association.de) - [Home](https://digital-euro-association.de) - Topics - [CBDC Resources](https://digital-euro-association.de/cbdc-resources) - [DEA Position Statement](https://digital-euro-association.de/dea-position-statement) - Projects - [Digital Euro Conference](https://digital-euro-conference.de/) - [Digital Money Academy on CBDCs](https://digital-euro-association.de/digital-money-academy-cbdcs) - [Digital Money Academy on Stablecoins](https://digital-euro-association.de/digital-money-academy-stablecoins) - [Events](https://digital-euro-association.de/events) - [Podcast](https://digital-euro-association.de/podcast) - [MiCAR Tracker](https://micatracker.digital-euro-association.de/) - [Quarterly Insights](https://digital-euro-association.de/quarterly-insights) - Engagements - [Public Affairs](https://digital-euro-association.de/public-affairs) - [Member Briefs](https://digital-euro-association.de/dea-member-briefs) - [Brussels Meetings](https://digital-euro-association.de/brussels-meetings) - [Research](https://digital-euro-association.de/research) - [Working Groups](https://digital-euro-association.de/working-groups) - [Stablecoin Committee](https://digital-euro-association.de/stablecoin-committee) - [CBDC Manifesto](https://digital-euro-association.de/cbdc-manifesto) - Community - [Core Team](https://digital-euro-association.de/core-team) - [Institutional Members](https://digital-euro-association.de/members) - [Experts](https://digital-euro-association.de/experts) - [Expert Overview](https://digital-euro-association.de/experts) - [Job Portal](https://digital-euro-association.de/vacancies) - [Blog](https://digital-euro-association.de/blog) [Join Now](https://digital-euro-association.de/temp-membership-opportunities?hsLang=en) [Home](https://digital-euro-association.de/?hsLang=en)TopicsStablecoins PRIVATELY ISSUED DIGITAL MONEY # Stablecoins Digital money. A reference value. Understand how stablecoins work, where euro-denominated stablecoins fit and what MiCA means. Explore the opportunities, the risks and the DEA’s work on Europe’s digital money ecosystem. [Understand stablecoins](https://digital-euro-association.de/stablecoins#essentials)[Explore the MiCAR Tracker](https://micatracker.digital-euro-association.de/) Independent insight from the Digital Euro Association STABLECOINS AT A GLANCE ## A stable value is the aim. Reference A currency or other value Issuer A private entity or arrangement Trust Backing, rights and resilience A price target is not a guarantee. Design and regulation matter. On this page[The essentials](https://digital-euro-association.de/stablecoins#essentials)[MiCA in Europe](https://digital-euro-association.de/stablecoins#europe)[Uses & risks](https://digital-euro-association.de/stablecoins#design)[DEA resources](https://digital-euro-association.de/stablecoins#research)[FAQs](https://digital-euro-association.de/stablecoins#faqs) [![CBDC Tracker](https://digital-euro-association.de/hs-fs/hubfs/CBDC%20Tracker.png?width=1718&height=750&name=CBDC%20Tracker.png)](https://cbdctracker.org/) ### [CBDC Tracker](https://cbdctracker.org/) THE EUROPEAN STARTING POINT ## What is a stablecoin? In the EU, “stablecoin” is a common label, rather than a standalone MiCA legal category. MiCA defines two relevant types of crypto-asset that aim to maintain a stable value: e-money tokens (EMTs) and asset-referenced tokens (ARTs). The distinction depends on what the token references. A crypto-asset designed to track the euro alone falls within the EMT definition. Referencing the euro does not make it central bank money or the Eurosystem’s proposed digital euro. Source[MiCA Article 3(1)(6) and (7): ART and EMT definitions](https://www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mica/article-3-definitions) ### E-money tokens (EMTs) Crypto-assets that aim to maintain a stable value by referencing one official currency, such as the euro. Example: a token designed to track €1. MiCA Article 3(1)(7) [E-money tokens (EMTs)](https://www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mica/article-3-definitions) ### Asset-referenced tokens (ARTs) Crypto-assets other than EMTs that aim to maintain a stable value by referencing another value or right, or a combination, including one or more official currencies. Example: a token referencing a basket of currencies. MiCA Article 3(1)(6) [Asset-referenced tokens (ARTs)](https://www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mica/article-3-definitions) ### Stablecoin or digital euro? A shared currency reference. A different issuer and legal claim. [Explore CBDCs](https://digital-euro-association.de/cbdc/en?hsLang=en) THE EUROPEAN PERSPECTIVE ## Stablecoins under MiCA MiCA, also called MiCAR, sets requirements for stablecoin issuers and related services in the EU. Classification is the starting point. Issuer authorisation, holder rights and disclosures determine how the rules apply in practice. The rules for these categories have applied since 30 June 2024. For e-money tokens offered in the EU, the general rule is that the issuer must be authorised as a credit institution or electronic money institution and publish a notified white paper, subject to statutory exemptions. October 2026 update: ESMA has set out supervisory expectations for services involving unauthorised stablecoins. Availability on a platform does not establish compliance. Check the issuer, token and provider separately. Sources[MiCA definitions](https://www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mica/article-3-definitions)[Issuer requirements](https://www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mica/article-48-requirements-offer-public-or)[ESMA: October 2026 update](https://www.esma.europa.eu/press-news/esma-news/esma-sets-out-supervisory-expectations-services-related-unauthorised) THREE THINGS TO KNOW 01 ### Who can issue EMTs? The general rule is an authorised credit institution or electronic money institution, subject to MiCA’s requirements and statutory exemptions. 02 ### What rights do holders have? EMT holders have a claim on the issuer and a right to request redemption at any time and at par value. The white paper must explain the conditions. 03 ### Check the legal entity A service provider’s authorisation is different from an issuer’s status. Verify the legal entity, token and permitted activities separately. FROM DESIGN TO PRACTICE ## Where stablecoins can be useful The opportunity depends on the whole payment journey: acquiring the token, transferring it and converting or redeeming it. On-chain speed alone does not tell the full story. ### Cross-border payments Transfers can move across networks outside banking hours. Total cost and speed still depend on exchange rates, access to funds, compliance and local payment connections. ### Programmable payments Smart contracts can link a payment to agreed conditions. Reliable data, secure code and clear responsibilities remain essential. ### Digital asset markets Stablecoins are used to trade and move value in crypto-asset markets. They can also serve as a payment asset in tokenised market arrangements, subject to the relevant rules. ### Machine-to-machine payments Connected devices could pay for energy, mobility or digital services. The DEA explores these applications in its research on machine money. ### What can go wrong? Stability is an objective, not a certainty. #### Backing & liquidity Assets can lose value or become difficult to sell. Heavy redemption demand can put pressure on the peg. #### Issuer & redemption Legal rights, insolvency arrangements and access to redemption affect whether holders can recover funds. #### Technology & providers Network outages, contract vulnerabilities, custody failures and lost keys can disrupt access or cause losses. MiCA adds obligations and protections. EMTs are not covered by EU deposit guarantee or investor compensation schemes. [Read the required disclosures](https://www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mica/article-51-content-and-form-crypto-asset) Sources[BIS working paper: cross-border payments (2026)](https://www.bis.org/publications/working-paper-1385-competing-rails-crossborder-payments-banks-fintechs-and-stablecoins.pdf)[FSB: cross-border vulnerabilities (2026)](https://www.fsb.org/uploads/P121026-2.pdf) EXPLORE THE DEA’S STABLECOIN WORK ## Research. Policy. Market insight. Explore DEA stablecoin research, follow EU regulatory developments and contribute to the discussion on Europe’s stablecoin ecosystem. DEA STABLECOIN COMMITTEE ### From market developments to informed dialogue. Explore the DEA’s independent pan-European forum, bringing together institutional perspectives on regulation, market developments and the future of euro stablecoins. [Explore the committee](https://digital-euro-association.de/stablecoin-committee?hsLang=en) ![DEA MiCAR Tracker cover](https://micatracker.digital-euro-association.de/cover.png) ### MiCAR Tracker DEA market data · ESMA registers Search EMT issuers, authorised service providers and entities flagged as non-compliant. Check the ESMA source data date and methodology. Explore the tracker → [MiCAR Tracker](https://micatracker.digital-euro-association.de/) ![Cover of The Role of Stablecoins in Financial Sovereignty, DEA working group paper, 2025](https://digital-euro-association.de/hs-fs/hubfs/For%20Website.jpg?width=1880&height=1576&name=For%20Website.jpg) ### Stablecoins & financial sovereignty DEA working group paper · 2025 How stablecoins affect monetary, payments, regulatory and digital sovereignty, with strategic considerations for EU policymakers. Read the paper → [Stablecoins & financial sovereignty](https://digital-euro-association.de/hubfs/DEA%20-%20The%20Role%20of%20Stablecoins%20in%20Financial%20Sovereignty.pdf?hsLang=en) ![Cover of The future of machine money: opportunities for stablecoins in Europe, DEA and Lipis Advisors, 2023](https://digital-euro-association.de/hs-fs/hubfs/M2M%20for%20Website.png?width=850&height=600&name=M2M%20for%20Website.png) ### The future of machine money DEA & Lipis Advisors · 2023 Explore potential stablecoin applications in Europe’s machine-to-machine economy, including industry use cases and design considerations. Read the paper → [The future of machine money](https://digital-euro-association.de/hubfs/The%20Future%20of%20Machine%20Money%20_%20DEA.pdf?hsLang=en) ### Stablecoin reading DEA research and key sources. A European reading list, led by the DEA’s own work. Publication dates distinguish earlier research from current rules and recent policy proposals. - DEA POLICY RESPONSE · OCTOBER 2026 ### [DEA’s response to the European Commission’s MiCA Review](https://digital-euro-association.de/blog/our-response-to-the-european-commissions-mica-review?hsLang=en) DEA’s proposals on redemption, reserve requirements, multi-issuance and proportionate regulation. These are policy proposals, distinct from the law currently in force. - DEA WORKING GROUP PAPER · 2025 ### [The Role of Stablecoins in Financial Sovereignty](https://digital-euro-association.de/hubfs/DEA%20-%20The%20Role%20of%20Stablecoins%20in%20Financial%20Sovereignty.pdf?hsLang=en) Strategic considerations for EU policymakers across monetary, payments, regulatory and digital sovereignty. - DEA WORKING GROUP PAPER · 2024 ### [MiCAR’s Influence on Stablecoins: Industry Insights and Implications](https://digital-euro-association.de/hubfs/MiCAR%20Influence%20on%20Stablecoins%20-%20DEA%20Final-.pdf?hsLang=en) Industry perspectives on opportunities and regulatory challenges as MiCA’s stablecoin provisions began applying. Read alongside current EU law and supervisory guidance. - DEA & LIPIS ADVISORS · 2023 ### [The future of machine money: opportunities for stablecoins in Europe](https://digital-euro-association.de/hubfs/The%20Future%20of%20Machine%20Money%20_%20DEA.pdf?hsLang=en) A study of potential IoT and machine-to-machine payment applications. Its regulatory discussion reflects the publication date. - EU LAW · REGULATION (EU) 2023/1114 ### [Markets in Crypto-Assets Regulation (MiCA)](https://eur-lex.europa.eu/eli/reg/2023/1114/oj/eng) The legal source for EMT and ART definitions, issuer obligations, reserves, redemption and related services. Use EUR-Lex’s current consolidated text when checking amendments. - FINANCIAL STABILITY BOARD · OCTOBER 2026 ### [Global Stablecoin Arrangements: cross-border vulnerabilities and financial stability monitoring](https://www.fsb.org/uploads/P121026-2.pdf) Analysis of cross-border reserve, redemption and supervisory vulnerabilities, and the information needed to monitor them. - BIS WORKING PAPER NO 1385 · OCTOBER 2026 ### [Competing rails for cross-border payments: banks, fintechs, and stablecoins](https://www.bis.org/publications/working-paper-1385-competing-rails-crossborder-payments-banks-fintechs-and-stablecoins.pdf) Research comparing total payment costs across different routes. A working paper by its authors, rather than an official BIS policy position. YOUR QUESTIONS, ANSWERED ## Stablecoin FAQs Clear answers on euro stablecoins, private digital money and the EU rules. Sources[MiCA definitions](https://www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mica/article-3-definitions)[EMT redemption rights](https://www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mica/article-49-issuance-and-redeemability-e)[EMT disclosures](https://www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mica/article-51-content-and-form-crypto-asset) ### What does “private digital euro” mean? It is a broad description of privately issued digital money denominated in euro. On this page, the focus is euro stablecoins. Tokenised commercial bank deposits are another form of private digital money, with a different legal basis. Always identify the instrument and the holder’s claim. ### Are stablecoins always stable? No. Their market price can move away from the intended reference value. Backing, liquidity, confidence in the issuer, redemption arrangements and operational problems can all affect the peg. ### Is a euro stablecoin the same as the digital euro? No. A euro stablecoin is privately issued. A digital euro issued by the Eurosystem would be central bank money. Referencing the same currency does not make their issuers, legal claims or protections equivalent. ### What is the difference between an EMT and an ART? An EMT references one official currency. An ART is not an EMT and references another value or right, or a combination, including one or more official currencies. The design and legal classification determine which requirements apply. ### Can banks issue euro stablecoins? Yes. Under MiCA, authorised credit institutions and electronic money institutions can issue EMTs, subject to the applicable requirements. Issuance is distinct from custody, exchange, distribution and other services that banks or other providers may offer. ### What redemption right does an EMT holder have? MiCA gives EMT holders a claim against the issuer and a right to request redemption at any time and at par value, paid in funds other than electronic money. The white paper must explain the conditions. A sale on an exchange is a different transaction and may involve a different price or intermediary fees. ### Are EMTs covered by deposit guarantees? No. MiCA requires EMT white papers to warn that EMTs are not covered by EU deposit guarantee schemes or investor compensation schemes. Authorisation does not eliminate market, issuer or operational risk. ### Where can I follow the regulated European market? Use the [DEA MiCAR Tracker](https://micatracker.digital-euro-association.de/) to explore ESMA register data on EMT issuers, authorised service providers and entities flagged as non-compliant. Check the displayed data date and methodology. Verify a legal entity’s current status and permissions against [ESMA’s register and the relevant national authority](https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica). A service provider’s authorisation does not establish that every token it lists complies with MiCA. KEEP EXPLORING ## Explore central bank digital currencies Understand CBDCs, the digital euro and how public digital money differs from euro stablecoins. [Explore CBDCs](https://digital-euro-association.de/cbdc/en?hsLang=en) CONNECT WITH THE DEA ## Take part in Europe’s stablecoin discussion. Connect with the DEA’s community across banking, payments, technology, academia and policy. Explore institutional membership and our work on the future of digital money. [Discuss institutional membership](mailto:team@digital-euro-association.de)[Explore our expert community](https://digital-euro-association.de/experts?hsLang=en) ### Stay informed. Receive DEA news, research and event updates. [Subscribe to the newsletter](https://dashboard.mailerlite.com/forms/767193/110065400438326579/share) - [**Legal Notice**](https://home.digital-euro-association.de/legal-notice?hsLang=en) - [**Privacy**](https://home.digital-euro-association.de/privacy-policy-0?hsLang=en) - [**Code of Conduct**](https://home.digital-euro-association.de/code-of-conduct?hsLang=en) - [**FAQ**](https://home.digital-euro-association.de/faq?hsLang=en) - [**Impressum**](https://home.digital-euro-association.de/impressum?hsLang=en) [mailto:info@digital-euro-association.de](mailto:info@digital-euro-association.de) Digital Euro Association e.V. Copyright © 2026