Key facts
- USDC is the second-largest stablecoin by market capitalization at $73 billion.
- The classification means USDC will be jointly overseen by the EBA and France's Autorité de Contrôle Prudentiel et de Résolution.
- The EBA granted the 'significant' classification to only 45 other projects.
The European Banking Authority (EBA) has classified Circle's USDC stablecoin as a significant e-money token under the Markets in Crypto Assets (MiCA) framework. This classification, which has been granted to only 45 other projects, means USDC will be jointly overseen by the EBA and France's supervisory authority, the Autorité de Contrôle Prudentiel et de Résolution. USDC is the second-largest stablecoin by market capitalization, with a value of $73 billion, compared to Tether USDt's $184 billion. The move comes as EU-based issuers seek regulated dollar-pegged stablecoins. AllUnity CEO Alexander Höptner stated that a euro stablecoin alone is insufficient for European corporates making global cross-border payments. Meanwhile, policymakers at the European Central Bank continue to explore the potential introduction of a digital euro, first proposed in 2020.