STABLECOIN ISSUANCE
MiCA identifies two types of stablecoins – E-money tokens (EMTs) and asset-referenced tokens (ARTs). Even though they both purport to do the same thing i.e. to maintain a stable value pegged to a FIAT currency, the difference is the possible issuers and the underlying assets backing up their value.
- ARTs – can be issued by any entity, provided they are authorized to do so and can be backed by any assets
- EMTs – can only be issued by credit or electronic money institutions, without the need to be separately authorized, and can be backed by the FIAT currency it’s pegged to
- Once authorized to issue stablecoins by a single EU regulator, the issuers will have the right of issuance across the EU
- Granting interest for holding stablecoins will be prohibited
- Both stablecoins can be considered “significant” if, among other things, their daily transaction volumes and market capitalization exceed a certain threshold
As with most crypto activities, stablecoin issuance is heavily technology-dependent that’s why it’s crucial to set up not only a reliable future-resistant DLT infrastructure but also one that is compliant and has the required tracking and reporting capabilities.
Inga Karulaitytė-Kvainauskienė
Lawyer, attorney at law, partner of the law firm
+370 5 212 40 84
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