EMT (E-Money Token)

E-Money Tokens are crypto assets defined under the EU's Markets in Crypto-Assets Regulation that aim to maintain a stable value by referencing the value of a single fiat currency, such as the euro or U.S. dollar, representing the regulatory classification for single-currency stablecoins.

Under MiCA, EMTs can only be issued by credit institutions or electronic money institutions authorized under the E-Money Directive, ensuring issuers meet established banking or e-money regulatory standards. EMT issuers must maintain reserve assets of equivalent value to outstanding tokens, ensure segregation of reserve assets from issuers' own funds, provide redemption rights at par value at any time, and publish comprehensive whitepapers disclosing reserve composition, governance, and risk factors.

Examples of EMTs include USDC and USDT when issued within EU jurisdiction, as both reference the U.S. dollar. MiCA's EMT regime became effective in June 2024, with significant e-money tokens subject to enhanced supervision by ESMA. The regulation aims to prevent runs on stablecoins while enabling their use for payments and settlements, establishing Europe as the first major jurisdiction with comprehensive stablecoin regulatory framework.