Stablecoin Issuers

The rise of stablecoins has reshaped access to crypto markets: they function as reserve assets, payment gateways, and the fuel of decentralised finance (DeFi).

Since the entry into application of MiCA (Markets in Crypto-Assets Regulation), the issuance of e-money tokens (EMTs) is subject to strict prudential supervision: prior authorisation as an electronic money institution (EMI), the establishment of a fully liquid and monitored reserve, enhanced documentary transparency, and ongoing oversight by the ACPR (Autorité de contrôle prudentiel et de résolution) and the EBA (European Banking Authority).

At every stage, relying on a law firm seasoned in advising stablecoin issuers de-risks the launch, day-to-day management, and distribution of the token.

ORWL’s expertise on stablecoins

Our team combines three essential expertises:

Mastery of the applicable framework — Our lawyers bring deep expertise in banking and financial law, payments regulation, and MiCA. They are actively involved in regulatory development and doctrinal work on these topics.
Foresight and anticipation — Hands-on participation in industry working groups through investment in trade associations such as ADAN, the main crypto association in France, allowing us to anticipate forthcoming standards.
Technical expertise — A precise understanding of the financial, economic and technical mechanisms underpinning crypto-assets and stablecoins, together with in-depth knowledge of the industry and the right partners.

This combined legal, economic and technological perspective allows ORWL to engage seamlessly with product, compliance, finance and engineering teams, translating legal constraints into operational specifications. Since 2018, we have supported fintechs, payment institutions and neo-banks in the design, issuance and regulatory lifecycle of euro- and dollar-denominated stablecoins.

What legal framework for stablecoin issuers?

MiCA — Title IV subjects all EMTs to prior authorisation, a reserve denominated in the same currency, an on-demand redemption mechanism at par, and a detailed white paper. Articles 48 to 57 set out governance requirements, investment policy for the reserve, and reporting obligations.

Electronic money institution status — The issuing entity must maintain adequate initial capital, robust internal control systems, and a segregated account for safeguarding funds. Ancillary activities (crypto/fiat exchange, payment services) remain ring-fenced where necessary to protect customer funds.

Crypto-asset services — Custody of tokens, exchange, listing, or operating a trading venue require CASP (Crypto-Asset Service Provider) authorisation. Since June 2025, the boundary between e-money issuance and crypto-asset service provision requires precise mapping of flows.

AML/CFT and the Travel Rule — Application of the Travel Rule to stablecoins requires screening of sanctioned addresses, risk-based collection of KYC (Know Your Customer) data, and traceability of transfers above €1,000. Supervisors expect an internal holding register and immediate asset-freeze capabilities.

Transparency and sustainability — MiCA requires disclosure of the environmental footprint of the consensus mechanism securing the token. The calculation methodology must be independent and published annually.

Our step-by-step support

Audit & scoping — Legal qualification of the token, review of the reserve model, flow analysis, and mapping of prudential requirements.

Structuring and strategy — Choice of corporate/regulatory set-up (EMI, payment institution, group structure), drafting of the white paper, design of the redemption mechanism, preparation of ESG (Environmental, Social and Governance) disclosures, and a compliant communications plan.

Obtaining EMT authorisation and related approvals — Preparation of the ACPR application file: governance, AML/CFT (Anti-Money Laundering/Counter-Terrorist Financing) policies, business continuity plan, conflict-of-interest procedures, segregation arrangements, and IT documentation. Coordination with statutory auditors, depositary banks, and technical teams responsible for DORA (Digital Operational Resilience Act) compliance. Full support throughout interactions with the regulator.

Post-launch oversight — Regulatory watch, adaptation of smart contracts, support during on-site inspections, annual white paper updates, management of operational incidents, and ongoing dialogue with supervisors.

References & case studies

Here are selected examples of ORWL’s case studies for stablecoin issuers.

White Paper for an EMT Issuer

Context: A project in the process of obtaining authorisation as an electronic money institution (EMI) sought to issue a stablecoin e-money token (EMT).

Solution: ORWL provided targeted support on transaction flows, white paper drafting, the methodology for environmental indicators, distribution arrangements, and exchanges with the regulator.

Outcome: With ORWL’s assistance, the EMI obtained authorisation to issue its stablecoin under the supervision of the ACPR (Autorité de contrôle prudentiel et de résolution).

Environmental Indicator Methodology for a Stablecoin

Context: A stablecoin issuer sought assistance in implementing its environmental indicators (public deliverable and methodology) across multiple blockchains to meet MiCA requirements.

Solution: Drawing on both technical and regulatory expertise, ORWL delivered a benchmark of applicable methodologies for each indicator, tailored to the characteristics of the relevant blockchains.

Outcome: The benchmark results were incorporated into the issuer’s methodology and public disclosures, enabling the issuer to meet its MiCA obligations.

FAQ — Stablecoin Issuers

Find the key questions and answers on the regulatory framework for stablecoin offerings under MiCA.

What is the difference between an EMT and an ART under MiCA?

MiCA distinguishes between two categories of stablecoins: e-money tokens (EMTs), backed by a single official currency and designed as means of payment, and asset-referenced tokens (ARTs), backed by a basket (of currencies, commodities or crypto-assets). While their regulatory requirements are similar, issuing an ART is typically more complex due to reserve management and greater uncertainty in regulatory qualification.

How long does it take to obtain authorisation?

Timelines depend on the maturity of the application and the authorities’ workload. A well-prepared application can pass key milestones within a few months (pre-filing, submission, clarifications, decision), whereas incomplete or highly innovative files often require additional rounds of queries, extending the timetable.

Is EMI authorisation sufficient, or is CASP authorisation also required?

EMI (electronic money institution) authorisation is mandatory to issue EMTs or ARTs. However, if the issuer intends to provide ancillary services (third-party custody, exchange, or operating a trading venue), a separate CASP (Crypto-Asset Service Provider) authorisation is required. A precise mapping of flows and activities is essential to avoid non-compliant overlaps.

Are stablecoin issuers subject to the Travel Rule?

Yes. Transfers of stablecoins above €1,000 must include originator and beneficiary information, in line with the EU Transfer of Funds Regulation (TFR, Regulation (EU) 2023/1113). Supervisors also expect immediate freeze mechanisms and an internal holdings register.

Can a governance token coexist alongside an EMT?

Yes—provided the functions are strictly segregated: the EMT remains a redeemable means of payment, while the utility/governance token may be used for access or voting. However, any pecuniary right linked to the reserve remains prohibited.