# Circle’s EU USD Coin (USDC) Faces a 60% Reserve Deposit Floor By Riza Dagoc Canonical URL: https://www.tokenpost.com/news/regulation/34911 Published: 2026-10-19T17:13:46.000Z Updated: 2026-10-19T17:13:46.000Z Section: Regulation > USDC was the first of 45 e-money tokens notified under MiCA to receive the designation. The EBA’s specified financial oversight begins Nov. 12. Circle’s French electronic money unit will face a 60% reserve-deposit floor after the European Banking Authority (EBA) classified USD Coin (USDC) as a significant e-money token, with direct EBA oversight starting Nov. 12. The Oct. 14 ruling made USDC the first token among 45 notified as e-money under the European Union’s Markets in Crypto-Assets Regulation (MiCA) to receive significant status. Circle Internet Financial Europe SAS had begun issuing USDC in the EU in July 2024 under an electronic money license. The decision adds regulatory obligations to an existing operation; it does not mark the start of Circle’s EU issuance. Circle Internet Financial, LLC issues USDC outside the European Economic Area (EEA). Starting Nov. 12, the EBA will supervise Circle’s French issuer on own funds, reserve assets, liquidity requirements, and recovery and redemption plans. France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR) will keep responsibility for governance, outsourcing and conflicts of interest. The division gives the EU-level regulator responsibility for specified financial safeguards while leaving those other supervisory areas with France’s regulator. Under MiCA, an electronic money institution issuing a significant e-money token must hold at least 60% of its reserves as deposits with credit institutions. The standard minimum is 30%, making the significant-token threshold twice as high. These requirements apply to electronic money institutions, including Circle’s French issuer, and are distinct from the rules for credit institutions. The institutions in scope also face additional own-funds and liquidity requirements and must commission an independent reserve audit every six months. Circle’s current redemption policy assigns EEA requests to Circle Internet Financial Europe SAS, with redemption at par subject to identity and transaction checks. Circle Internet Financial, LLC handles redemptions outside the EEA under separate terms. The EBA and New York State Department of Financial Services have an information-sharing agreement covering cross-border stablecoin supervision. The [scheduled oversight change]() takes effect Nov. 12, when the EBA begins its specified supervisory responsibilities. ## Links in this article - [scheduled oversight change](https://www.tokenpost.com/news/regulation/32343)