Crypto glossary
E-money token (EMT)
An e-money token (EMT) is MiCA's category for crypto-assets that keep a stable value by referencing one official currency, such as a euro or dollar stablecoin.
The EU's Markets in Crypto-Assets Regulation sorts stablecoins into two groups. E-money tokens reference a single official currency and are treated much like electronic money: only credit institutions and authorised electronic money institutions may issue them, they must publish a white paper notified to their supervisor and holders have a right to redeem at par, at any time and free of charge.
Most stablecoins traded in Europe fall into this category, including dollar tokens such as USDC and euro tokens such as EURC. Rules for EMTs have applied since 30 June 2024, and crypto-asset service providers in the EU may only offer stablecoins whose issuers comply, which led several exchanges to delist non-compliant tokens for European users.
Issuers cannot pay interest on EMTs and must keep at least part of their reserves as deposits in credit institutions. Tokens deemed significant because of their size or use face stricter capital and liquidity requirements and supervision by the European Banking Authority. The label says nothing about how safe a particular issuer is; it only defines the rules it must follow.
Example
A French electronic money institution launches a euro token, notifies its white paper to the national regulator and must redeem any holder's tokens for euros on request without charging a fee.