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.