CryptoSlate
Europe's central banks want the EU to drop MiCA's fixed stablecoin deposit floors, Reuters and Cinco Días reported on Sept. 22. Under current rules, issuers of non-significant tokens must hold at least 30% of official-currency reserves as deposits with EU credit institutions, rising to 60% for significant tokens. The European System of Central Banks wants that minimum removed, replaced by liquidity tests: 20% of reserves convertible to cash within one working day and 30% within five for non-significant tokens, scaling to 40% and 60% for significant ones.
Why it matters
The deposit floor creates a two-way channel between stablecoins and banks. Circle held part of USDC's reserves at Silicon Valley Bank during the March 2023 turmoil, and uncertainty over access pressured the peg, with USDC's market cap falling 26% in a month, per an ECB analysis. Redemptions can also force issuers to pull wholesale deposits, draining bank funding. The ESCB's input lands in the European Commission's MiCA review, which runs through Sept. 30 and could feed a legislative proposal.
The shift would also move money. Banks would lose a guaranteed share of reserve balances, while issuers gain flexibility to hold short-term sovereign paper and reverse repos that typically earn more, shifting yield and risk toward government-debt markets. Draft safeguards would cap deposits at any single systemically important bank at 25% of reserves.
Market impact
Tether CEO Paolo Ardoino said the reported position echoed Tether's warnings that concentrating reserves in commercial banks transmits distress between issuer and lender, though the change would not bring USDT under MiCA authorization. Euro-denominated stablecoins remain small at roughly €450 million in January 2026 versus about $300 billion for dollar tokens, so the immediate exposure of euro-area banks is limited. The question is whether a maturity-based test preserves redemption safety as adoption grows, or simply relocates stablecoin stress from bank funding to sovereign-debt and repo markets.
Frequently asked questions
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What deposit floor does MiCA currently require for stablecoin reserves?
Issuers of non-significant tokens must keep at least 30% of official-currency reserves as deposits with EU credit institutions, rising to 60% for significant tokens, under the European Banking Authority's technical standards.
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What would the ESCB's proposed alternative to MiCA's deposit rule look like?
It replaces the fixed deposit minimum with liquidity timetables: at least 20% of reserves available within one working day and 30% within five days for non-significant tokens, rising to 40% and 60% for significant tokens.
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Why did USDC's peg come under pressure in March 2023?
Circle held part of USDC's reserves at Silicon Valley Bank during the banking turmoil, and uncertainty over access to those funds pressured the peg. USDC's market capitalization fell 26% over a month according to an ECB analysis.
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Did Tether support removing MiCA's bank-deposit requirement?
Tether CEO Paolo Ardoino said the reported ESCB position echoed Tether's warning that concentrating reserves in commercial banks can transmit distress between an issuer and a lender. The change would not confer EU authorization on USDT.
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How large is the euro-denominated stablecoin market compared with dollar tokens?
Euro-denominated stablecoins had a market capitalization of about €450 million in January 2026, compared with roughly $300 billion for dollar-denominated tokens.
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