Most European stablecoin issuers were not prepared for the MiCA regulation, severely limiting their commercial capabilities. According to ESMA’s interim register, out of approximately 23 authorized issuers of electronic money tokens (EMTs), only nine companies have obtained full authorization covering both EMT issuance and CASP services.
The remaining 14 players have found themselves caught in a regulatory trap.
“Most stablecoin issuers in the EU cannot provide custody of their own tokens on behalf of clients. This severely limits the range of services they can offer,” said Circle’s Head of EU Strategy and Policy, Patrick Hansen, expressing surprise at the passivity of competitors.
Meanwhile, Circle, the issuer of USDC and EURC, together with Société Générale-Forge, has emerged as the main beneficiary of this fragmentation, gaining a long-term advantage in the competition for institutional capital.
The B2B custody lockout — why it matters
Nothing has changed for retail holders of euro stablecoins: they can freely transfer tokens between their non-custodial wallets. The restrictions have hit the B2B segment hard. Without a CASP license, issuers are not permitted to hold tokens in custody or process automated payouts on behalf of corporate clients.
To launch these services, companies must undergo the lengthy notification procedure under Article 60 of MiCA, which can take up to a year in major jurisdictions such as France or Luxembourg.
Instead of waiting for the reviews to be completed, issuers have begun migrating to third-party regulated platforms, ushering in a period of forced B2B alliances.
A notable example is the French stablecoin EURØP from Schuman Financial, which holds EMT status but does not have CASP authorization. The project has natively integrated its asset into the XRP Ledger blockchain infrastructure.
Unable to manage the asset independently, Schuman Financial uses Ripple’s European MiCA CASP and EMI licenses to provide legal custody and transfers across 30 European countries.
A long-term advantage for the top tier
Market participants expect this imbalance to persist. Completing the compliance process under Article 60 of MiCA in major European jurisdictions takes anywhere from several months to a year.
This guarantees Circle and Société Générale-Forge a long-term advantage in the competition for institutional capital within the EEA until the euro stablecoin sector moves beyond the period of forced alliances and returns to direct product competition.
