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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsMiCA does not impose one reserve rule on every stablecoin. The first question is whether the token is an asset-referenced token (ART) or an e-money token (EMT). ART issuers must maintain a reserve that covers the risks of the assets the token references, remains at least equal in value to ARTs in circulation, and can support holders’ redemption rights. EMTs have a separate framework.
First classify the token: ART or EMT
“Stablecoin” is a common label, not the distinction MiCA uses to set reserve obligations. An ART references assets or rights; an EMT references the value of one official currency. These categories have separate reserve and redemption frameworks under Regulation (EU) 2023/1114. The classification determines which rules apply, so it is not safe to infer an issuer’s obligations from the word “stablecoin” alone.
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| MiCA category | What the token references | Reserve and redemption framework |
|---|---|---|
| ART | Assets or rights, potentially in a basket | MiCA’s ART reserve rules apply. Holders may request redemption at the market value of the referenced assets held or delivery of those assets. Regulation (EU) 2023/1114. |
| EMT | One official currency | MiCA provides a distinct reserve and redemption framework. The exact reserve composition and redemption mechanics are not stated here. MiCA official summary. |
What an ART reserve must cover
An ART issuer must constitute and maintain the reserve at all times. Its composition and management must address risks associated with the assets the token references and the liquidity risks created by holders’ permanent redemption rights. The reserve’s value must be at least equal to the corresponding value of ARTs in circulation; issuance and redemption must correspond to changes in that reserve. These are legal obligations, not a statistical estimate of how much backing issuers typically hold. Regulation (EU) 2023/1114.
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Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →The reserve backs the issuer’s liabilities to holders. MiCA requires it to be legally segregated from the issuer’s estate and from the reserves of its other ARTs, and operationally segregated as well. Custody safeguards are intended to preserve that separation and allow prompt access. They reduce risks; they do not guarantee that every holder will recover the full value of a token in every insolvency scenario. Regulation (EU) 2023/1114.
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How reserve assets may be held or invested
MiCA does not limit an ART reserve to cash. If an issuer invests part of it, the investment must be in highly liquid financial instruments with minimal market, credit and concentration risk, capable of being liquidated rapidly with minimal adverse price effect. The issuer bears profits and losses, including changes in instrument values and specified counterparty or operational risks arising from investment. Regulation (EU) 2023/1114.
Reserve custody and investment are related but distinct controls: custody safeguards separation and access, while investment rules constrain what assets may be used and the risks they may introduce. Neither should be read as a promise that reserve assets cannot lose value or that redemption will never be delayed in a stressed situation.
What ART holders can redeem, and how
ART holders have a right to redeem at all times. On request, the issuer must either pay funds other than electronic money equivalent to the market value of the referenced assets held, or deliver the referenced assets. The issuer’s redemption policy must explain how holders exercise that right, how valuation and settlement work, and how redemptions are handled in stressed circumstances. Article 39(3) says redemption is not subject to a fee, without prejudice to Article 46. Regulation (EU) 2023/1114, Article 39.
A redemption right is therefore not simply a promise that a token will always trade at a particular price on an exchange. It is a right against the issuer, exercised under the issuer’s policy and MiCA’s rules. The market-value basis specified for ART redemption also means the amount or assets delivered are tied to the value of the referenced assets held, rather than an assumed fixed one-unit payment.
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What the 2025 liquidity-management rules add
Commission Delegated Regulation (EU) 2025/1264 specifies minimum contents for liquidity-management policies and procedures applying to ART and EMT issuers. It addresses the aim of having reserves able to meet redemptions under both normal and stress scenarios while maintaining business continuity.
This delegated regulation supplements MiCA’s framework; it is not a replacement for the base regulation or a complete statement of every liquidity calibration and supervisory expectation. The concrete reserve composition and redemption obligations still depend on the token category and applicable provisions.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What these rules do—and do not—establish
- They establish issuer obligations for reserve backing, segregation, investment constraints and redemption for ARTs.
- They do not make every token called a stablecoin an ART or subject to the same reserve provisions; EMTs are separately classified.
- They do not mean an ART reserve must consist only of cash, nor do segregation and custody safeguards amount to a guarantee of loss-free recovery.
- They do not, by themselves, establish whether a particular issuer or token complies. That requires assessing the token’s classification and the issuer’s arrangements against the applicable rules.
This is a general explanation of EU MiCA rules, not an assessment of any particular token or issuer.
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