What are stablecoins?
A stablecoin is a crypto-asset that promises a fixed value in a currency, in most cases one US dollar per token. The issuer holds a reserve and redeems the token for money. EU law does not use the word. It knows the e-money token and the asset-referenced token. The German terms are E-Geld-Token and vermögenswertreferenzierter Token.
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Stablecoins in brief
| Term | Stablecoin. In EU law: e-money token (EMT) and asset-referenced token (ART). German: E-Geld-Token and vermögenswertreferenzierter Token. |
|---|---|
| Legal source | Article 3(1)(6) and (7) of Regulation (EU) 2023/1114 (MiCA), Title III for ARTs, Title IV for EMTs. |
| Applies since | Titles III and IV since , the other titles since (Article 149). |
| Supervisors | BaFin in Germany, FMA in Austria. The EBA supervises issuers of significant tokens (Article 117). FINMA in Switzerland, under Swiss law. |
| Currency | 97 percent of stablecoin issuance is pegged to the US dollar (IMF, December 2025). |
| Size | About USD 300 billion in September 2025 (IMF, December 2025). |
How do stablecoins work?
Stablecoins work like prepaid electronic money on a blockchain. A customer pays money to the issuer and receives tokens of the same face value. The issuer keeps the money as a reserve. A holder who returns the token gets money back.
MiCA writes this into law for e-money tokens. Article 48(2) says that e-money tokens "shall be deemed to be electronic money". Under Article 49 the issuer issues the token at par value on the receipt of funds, the holder has a claim against the issuer, and the issuer redeems at any time and at par value. The redemption is free of charge.
The Bank for International Settlements (BIS) describes stablecoins as "crypto tokens that live on decentralised ledgers and promise to always be worth a fixed amount in fiat currency (eg one dollar)" (BIS, ). Holders send the token from wallet to wallet without the issuer. The BIS calls it a digital bearer instrument for that reason.
What are stablecoins pegged to?
Most stablecoins are pegged to one currency. The International Monetary Fund (IMF) counts 97 percent of issuance as pegged to the US dollar, and most of the rest is denominated in euros (IMF, December 2025).
MiCA sorts the tokens by their peg:
| Category | Pegged to | Who may issue it in the EU |
|---|---|---|
| E-money token (EMT) | The value of one official currency, such as the euro or the US dollar | A credit institution or an electronic money institution (Article 48) |
| Asset-referenced token (ART) | Another value or right, or a combination, for example two currencies or gold | A legal person with an authorization under Article 21, or a credit institution (Article 16) |
How stablecoins maintain their value depends on the backing. The BIS names three variants: short-term assets in fiat currency, crypto collateral and algorithmic arrangements. What are stablecoins backed by? covers the reserve rules.
Are e-money tokens stablecoins?
Yes. The e-money token is the legal category of the EU for a stablecoin that references one official currency. A stablecoin on a basket of currencies or on a commodity is an asset-referenced token.
Examples of stablecoins with a notified white paper are in the register of the European Securities and Markets Authority (ESMA). The file of holds 49 entries for e-money tokens from 24 issuers in 14 countries. Among the issuers are Circle Internet Financial Europe SAS and Société Générale - Forge in France and AllUnity GmbH in Germany. The file for asset-referenced tokens holds no entry (ESMA, interim MiCA register).
Is a stablecoin a cryptocurrency?
A stablecoin is a crypto-asset in the sense of Article 3(1)(5) of MiCA: a digital representation of a value or a right that is transferred and stored on a distributed ledger. In crypto markets, stablecoins are used mostly to pay for crypto assets or to hold liquidity between two investments, according to the IMF.
Stablecoin vs bitcoin: bitcoin has no issuer and no reserve. A stablecoin has both. The BIS writes: "Unlike unbacked crypto coins, most stablecoins are issued by a single, central entity."
The promise can fail for a time. According to the IMF, about 99 percent of intraday deviations stayed within 1 percent of the dollar value. In March 2023 one large dollar stablecoin traded 12 percent below parity after the collapse of Silicon Valley Bank, where the issuer held deposits. The price stayed below par for about two days.
What are stablecoins in Germany, Austria and Switzerland?
In Germany and Austria a stablecoin is an e-money token or an asset-referenced token under MiCA. The regulation applies directly in both countries. In Germany the Kryptomärkteaufsichtsgesetz (KMAG) of names BaFin as the competent authority (section 3). In Austria the MiCA-Verordnung-Vollzugsgesetz (BGBl. I Nr. 111/2024) names the FMA (section 1).
Switzerland is outside the EU, so MiCA does not apply there. FINMA writes in its Guidance 06/2024 that the claims of stablecoin holders "are usually categorised as deposits under banking law or collective investment schemes". An issuer that accepts deposits from the public on a professional basis needs a banking license. FINMA notes that several Swiss issuers use a default guarantee from a bank and then need no banking license (FINMA, ).
This page gives no legal advice.
Sources
- European Union: Regulation (EU) 2023/1114 on markets in crypto-assets,
- Bank for International Settlements: Annual Economic Report 2025, chapter III: The next-generation monetary and financial system,
- International Monetary Fund: Understanding Stablecoins, Departmental Paper 2025/009, December 2025
- European Securities and Markets Authority: Interim MiCA register, file of
- FINMA: Guidance 06/2024, Stablecoins: risks and challenges for issuers of stablecoins and banks providing guarantees,
- Germany: Kryptomärkteaufsichtsgesetz (KMAG),
- Austria: MiCA-Verordnung-Vollzugsgesetz, BGBl. I Nr. 111/2024