ECB pushes for overhaul of MiCA stablecoin reserves

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ECB targets MiCA reserve rule

Highlights

Central banks want MiCA’s 60% deposit requirement removed.
The proposal favors short-term, highly liquid reserve assets.
The change aims to reduce bank liquidity risks.

The European System of Central Banks, which brings together the ECB and EU national central banks, wants the 60% bank-deposit requirement for significant stablecoins removed, according to CoinPedia. The central banks favor a reserve structure that gives issuers greater access to assets capable of being converted into cash or settled rapidly when holders seek redemptions.

Central banks focus on liquidity risk

MiCA currently requires issuers of significant e-money tokens and asset-referenced tokens to place at least 60% of relevant reserves in bank deposits. For non-significant issuers, the minimum is 30%. ECB research has previously identified a potential weakness in that arrangement: deposits can provide an immediate liquidity buffer, but large withdrawals during a stablecoin run could transfer stress directly to banks.

The ESCB instead wants rules requiring a minimum portion of reserves to be invested in highly liquid assets that mature within one to five working days. Such a structure would give issuers another source of funds for redemptions while reducing their dependence on deposits held at commercial lenders.

The issue is particularly relevant because stablecoins operate continuously, while some conventional reserve assets still settle on a T+1 or T+2 basis. The mismatch can become more significant during periods of heavy redemption demand.

Euro stablecoins face a reserve rethink

Any revision could affect regulated euro-denominated stablecoins, including Circle’s EURC. MiCA requires issuers to maintain reserves against tokens in circulation, meaning changes to eligible assets or liquidity requirements could force issuers to reconsider how those reserves are allocated.

The broader euro stablecoin market remains relatively small. ECB data put its market capitalization at about €450 million in January 2026, compared with roughly $300 billion for dollar-denominated stablecoins at the time.

The central banks have also raised a separate concern over enforcement, particularly when crypto businesses based outside the EU continue serving European customers without meeting the same requirements imposed on regulated providers.

MiCA faces a test as stablecoins grow

The debate illustrates a trade-off in European stablecoin regulation. Keeping large reserves at banks gives issuers readily accessible funds, but it also concentrates funding that could disappear quickly during market stress.

The ECB has already warned that stablecoin deposits can create two-way contagion: trouble at a bank can undermine an issuer, while heavy stablecoin redemptions can trigger abrupt withdrawals from banks. Revising MiCA would therefore change not only how stablecoin companies manage liquidity, but also how European regulators seek to insulate traditional lenders from a growing digital-asset market.

We also reported ECB seeks merchant participation for digital euro pilot as 2029 issuance target approaches.

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