Europe Has 29 Regulated Stablecoins Under MiCA, So Why Zero Asset-Backed Ones?

The European Union’s Markets in Crypto-Assets (MiCA) regulation has authorized 29 stablecoins since its enactment. However, all of these are electronic money tokens (EMTs), backed by a single fiat currency. No asset-referenced tokens (ARTs), which are designed to be backed by baskets of assets, have received approval under the framework.

The absence of ARTs has raised concerns about the feasibility of MiCA’s design for this category of stablecoins. Industry participants, including Circle’s EU Strategy and Policy executive, have noted structural barriers within the regulatory framework. These challenges suggest that the MiCA framework may not be optimized for the unique characteristics of ARTs.

MiCA’s staged rollout has provided time for market participants to adapt. Starting in June 2024 for stablecoins and extending to December 2024 for broader crypto regulations, the framework allows institutions to align with compliance requirements. This has fostered safer and more transparent crypto market structures, attracting institutional-grade capital.

Why Are No Asset-Backed Stablecoins Being Approved Under MiCA?

The MiCA regulation distinguishes between EMTs and ARTs. While EMTs have been successfully authorized by 19 issuers, ARTs remain unapproved. The European Securities and Markets Authority (ESMA) has confirmed that no ARTs have been authorized since the regulation took effect in late 2024.

Regulators face the challenge of designing a framework that accommodates the complexity of ARTs. These stablecoins, which are backed by a mix of assets, require more nuanced risk assessments than EMTs, which are typically fiat-backed. Patrick Hansen from Circle has highlighted that the absence of ARTs under MiCA could reflect limitations in the framework’s design.

How Is the Market Adapting to MiCA Compliance?

Despite the regulatory challenges, market participants are adapting. Societe Generale-FORGE, for example, recently launched EURCV, a euro-pegged stablecoin compliant with MiCA. This stablecoin operates on the Stellar blockchain network and is part of a broader trend of market actors aligning with MiCA requirements.

Other institutions are also adjusting to the regulatory landscape. Tether recently discontinued its euro-pegged stablecoin, EURT, in response to the regulatory shift. Exchanges such as Coinbase, OKX, and Binance have restricted or removed non-compliant stablecoins from their platforms.

What Are the Broader Implications for Stablecoin Adoption?

Stablecoin adoption is increasingly diverging from the broader crypto market cycle. USDC supply has reached a record high of $78 billion, and total stablecoin transaction volume hit $55 trillion in 2025. These figures reflect the growing use of stablecoins in global digital banking infrastructure and cross-border payments.

Bernstein analysts have identified stablecoins as long-term drivers of financial infrastructure. They note that stablecoin-linked cards are being supported by major payment networks like Visa, and that the Circle Payments Network is expanding its support for cross-border payments and institutional transfers.

How Are Banks Responding to Stablecoin Infrastructure Changes?

Banks are moving toward modular stablecoin infrastructures to reduce operational risk and enhance flexibility. This shift is part of a transition from “Stablecoin 1.0” to “Stablecoin 2.0,” where institutions route stablecoin payouts through multiple liquidity providers. This approach allows for better risk management and more reliable local fiat conversions.

Multi-provider networks also help institutions manage regulatory uncertainty and improve pricing. This shift aligns with traditional financial infrastructure models and supports cross-border payment systems, particularly in emerging markets. The modular approach is gaining traction as institutions seek greater control over their stablecoin operations.

What Do Analysts See as the Future of Stablecoins?

Analysts like Bernstein believe Circle is well-positioned to benefit from the growing adoption of stablecoins. USDC has demonstrated resilience despite the broader crypto bear market, and its supply has reached record levels. The expansion of the Circle Payments Network supports cross-border USDC transfers and local currency conversions.

Emerging opportunities for stablecoins include machine-to-machine payments for AI agents, which could rely on stablecoins for micropayments. Bernstein analysts see long-term potential for Circle due to its regulatory positioning, exchange partnerships, and growing global payments network.

The evolving stablecoin landscape is shaped by regulatory frameworks like MiCA, market demand for compliance, and institutional adoption of digital assets. As the industry continues to adapt, the role of stablecoins in global finance is expected to expand further.