The Markets in Crypto-Assets regulation's stablecoin provisions have been in force since mid-2024, and the market structure they produced is now clearly visible. Issuers authorised as e-money token providers in one member state can passport across the bloc, and exchanges serving EU users have progressively removed tokens whose issuers did not seek authorisation.
Authorised issuers must hold fully segregated reserves in low-risk liquid assets, honour redemption at par, and publish detailed disclosures. Significant tokens face tighter prudential requirements and direct supervision from the European Banking Authority.
Consolidation, not contraction
The practical result has been consolidation around a handful of compliant euro and dollar tokens rather than a shrinking market. Euro-denominated stablecoins remain small next to their dollar counterparts, but they are now issued inside a supervised perimeter, which is the precondition for bank and payment-institution distribution.
For real-world-asset issuers the read-across is direct: European distribution increasingly requires a named, supervised entity standing behind the instrument, which is the same test our RWA desk applies to commodity-backed tokens.
The cost of the rulebook
Passporting rewards issuers who can absorb capital, reporting and reserve requirements. That is a deliberate policy choice, and it will thin the field. Users get stronger guarantees; the market gets fewer providers.
Whether that trade is worth it depends on enforcement. A regime that authorises quickly but supervises loosely delivers the concentration without the safety.
