Banking Circle Wins MiCA License for Euro Stablecoin Settlement

Banking Circle received authorization under the EU Markets in Crypto-Assets regulation (MiCA) to operate as a regulated crypto-asset service provider and offer custody, settlement and fiat on- and off-ramps for euro-denominated stablecoins.

The firm said the license allows it to support euro-backed stablecoins and other tokenized cash instruments for wholesale bank settlement. Banking Circle plans to connect its existing payment accounts and rails with token networks so banks can settle payments using stablecoins and then convert tokens back into centralized deposits held at Banking Circle accounts or partner banks.

Banking Circle is targeting correspondent banking corridors and cross-border payment flows inside the EU single market. The service is aimed at commercial banks and regulated financial institutions that want faster final settlement, shorter intraday liquidity cycles and fewer correspondent relationships for euro and other European currencies.

The company intends to combine token settlement with anti-money-laundering and know-your-customer controls that meet EU requirements. MiCA sets reserve, transparency and governance rules for stablecoin issuers and service providers; authorized firms are subject to supervision and must meet reserve and convertibility standards.

The firm plans to provide APIs and connectivity tools so clients can integrate token settlement into treasury and payment systems while keeping deposits and customer accounts on traditional ledgers. Banking Circle’s approach keeps custody of fiat and commercial banking functions within regulated entities and uses token rails for final settlement.

Market participants and payment firms are developing settlement services that use tokenized money to route large-value and cross-border flows, enable 24/7 settlement and provide immediate finality on distributed ledgers. Providers are also building processes to guarantee convertibility back to bank deposits.

Industry users have pointed to operational benefits from token settlement, including shorter settlement windows and clearer intraday liquidity positions. Using a regulated provider lets banks rely on euro-pegged tokens backed by reserves and swap those tokens for central bank deposits or bank-held deposits under contractual terms.

Banking Circle is a payments-focused bank that provides accounts, clearing and treasury services to financial institutions and payment firms across Europe. Its MiCA authorization follows growing interest among banks in using tokenized money for cross-border payments and liquidity management within the EU regulatory framework.