The European Banking Authority has designated USDC as the EU's first 'significant electronic money token'.

BlockBeats news, October 15 — The European Banking Authority (EBA) announced that, under the Markets in Crypto-Assets Regulation (MiCA), it has designated USDC, issued by Circle, as a "significant electronic money token." USDC thus becomes the first token among the 45 electronic money tokens notified in the EU to meet this designation criteria.

Starting November 12, the EBA will directly assume responsibility for USDC's own funds, reserve assets, liquidity requirements, and recovery and redemption plans. These areas are currently overseen by the French Prudential Supervision and Resolution Authority (ACPR). Following the transfer, the ACPR will continue to be responsible for matters including corporate governance, qualifying holdings, fit-and-proper assessments, and conflicts of interest.

The EBA also stated that it has signed a memorandum of understanding with the New York State Department of Financial Services (NYDFS) to facilitate cross-border supervision and information exchange. The NYDFS oversees Circle's regulated operations in New York State. According to The Block data, USDC's supply is close to $73 billion, making it the world's second-largest stablecoin.