EU central banks urge MiCA stablecoin deposit rule removal
In brief
- ESCB proposes removing fixed deposit minimums from MiCA stablecoin rules
- Liquidity tests replace deposits to mitigate banking system risks
- SVB crisis exposed dangers of concentrated reserve exposure in 2023
- Dollar stablecoins hold $300 billion; euro versions at €450 million
Current MiCA deposit rules
MiCA currently requires issuers of non-significant stablecoin tokens to keep at least 30% of reserves as deposits with EU credit institutions. For significant stablecoin tokens, the minimum deposit requirement rises to 60%. These floors aim to anchor reserves in the regulated banking system.
But the ESCB sees a structural problem. A fixed deposit quota creates what regulators call "reciprocal exposures." Bank distress can impair the reserves behind a token, while a token run can drain a bank's funding. An issuer facing heavy withdrawals may pull large bank deposits at once, so stablecoin reserves behave like flighty wholesale money.
The ESCB proposal
The ESCB wants to swap deposit minimums for liquidity tests. For non-significant tokens, the proposal requires at least 20% of reserves available within one working day and 30% within five days. For significant tokens, the thresholds rise to 40% and 60%.
This shifts the test from where reserves sit to how fast they can be tapped. Deposits would remain eligible but no longer mandatory. The logic: speed of access matters more than institution type when a redemption wave hits.
SVB and the USDC precedent
The 2023 banking crisis gave the ESCB a concrete case study. During the March 2023 banking turmoil, Circle held part of USDC's reserves at Silicon Valley Bank, and uncertainty over access to those funds pressured the token's peg. USDC's market capitalization fell 26% over a month, according to ECB analysis.
The incident exposed a flaw in the fixed-deposit model: even if reserves sit in regulated banks, a bank failure can still freeze access and trigger a run. Liquidity tests would force issuers to hold a portion in instruments that convert to cash faster, regardless of bank health.
Market context
Dollar-denominated stablecoins held roughly $300 billion as of January 2026. Euro-denominated stablecoins had a market capitalization of about €450 million in the same month. The gap reflects dollar dominance in crypto liquidity, but euro stablecoins remain a focus for EU regulators.
The European Commission's MiCA review consultation runs through September 30. The ESCB's proposal is one input among many; the Commission hasn't endorsed the change. Draft safeguards cap an issuer's deposit at one systemically important bank at 25% of reserves and 1.5% of that bank, adding a second layer of concentration limits.
