BREAKING: EU Names Circle's USDC the First 'Significant' Stablecoin — Top Banking Watchdog Takes Over Its $73 Billion Reserves

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USDC stablecoin news EU EBA names Circle USDC first significant MiCA token $73 billion reserves trading

 Europe's top banking watchdog has just given Circle's USDC a first-of-its-kind label. On Wednesday, October 14, the European Banking Authority (EBA) classified USDC as a "significant" e-money token under the EU's MiCA crypto rules — the first token to receive that label out of the 45 e-money tokens notified in the European Union.


The change takes effect on November 12. From that date, USDC moves under dual supervision: the EBA will directly oversee its own funds, its reserve of assets, liquidity requirements, and recovery and redemption plans. Those duties move from France's ACPR regulator, which will still handle areas such as governance and conflicts of interest. In the EU, USDC is issued by Circle Internet Financial Europe SAS, and the EBA also has a cooperation agreement with New York's financial regulator for cross-border supervision.


The scale is large. USDC had about $73 billion in circulation worldwide at the end of June, making it the world's second-largest stablecoin behind Tether's USDT at roughly $184 billion. USDT is absent from regulated EU trading venues because Tether did not seek MiCA authorization, so USDC is the main regulated dollar stablecoin European traders can use.


For traders, this matters because exchanges and brokers in Europe will now list a dollar token whose reserves are supervised at EU level, not just by one national regulator. That stronger oversight could build more trust in USDC trading pairs and euro-to-dollar stablecoin flows, at a time when European companies say they still need dollar stablecoins for global cross-border payments, not only euro tokens.


Traders will now watch the handover to November 12 and whether the new status helps USDC grow its share of European trading volume. The next test is simple: whether big EU platforms push USDC pairs even harder now that its reserves carry the EU watchdog's direct stamp.


Read also: BREAKING: Standard Chartered Pushes $2 Trillion Stablecoin Target Back to 2030 — Supply Stuck Near $309 Billion as Usage Hits Records

This post is news only, not financial advice. Always do your own research before buying or selling crypto.

Sources: Cointelegraph, European Banking Authority, Finance Magnates

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