EMT (E-Money Token)

An EMT is the EU regulatory rail for payment stablecoins referenced to a single currency, for example euro or dollar at par. Functionally it closely resembles electronic money, which is why MiCA reserves its issuance to authorized credit institutions or electronic money institutions (EMIs). The defining feature is the right to redemption at par value at any time, in the reference currency, together with a white paper notified to the competent authority and reserves subject to safeguarding rules.

Unlike an ART, which can rest on a basket of assets, an EMT is tied to one official currency. It shares with the ART a significance regime, with the EBA supervising significant EMTs, and interest paid to holders is restricted. Provisions on EMTs and ARTs apply from 30 June 2024.

The examples are concrete. Circle obtained an EMI licence in France through the ACPR to issue USDC and EURC as EMTs in the EU. Société Générale-FORGE issues EURCV, a euro stablecoin backed by a bank, fitting the EMT regime. By contrast, Tether (USDT) did not obtain EMT authorization in the EU after MiCA took effect, which led several European platforms to remove it from their offering for European Economic Area users. For a tokenization project, the EMT defines who may issue and how redemption is guaranteed.