USDMiCA Licensing Slows as ECB Warns Stablecoins Could Drain Bank Deposits
Europe Expands Crypto Oversight While Preparing Digital Euro Pilot
TL;DR
- European regulators added 14 crypto-asset service providers to the MiCA register, bringing the authorized total to 294.
- ECB Executive Board member Piero Cipollone warned that wider stablecoin adoption could weaken banks by reducing retail deposits.
- The ECB selected 36 payment providers for a 12-month digital euro pilot scheduled to begin in the second half of 2027.
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European crypto licensing continued at a slower pace in July as regulators added 14 providers to the MiCA register, while European Central Bank Executive Board member Piero Cipollone warned that wider stablecoin adoption could draw money away from commercial bank deposits and weaken banks’ role in payments.
The European Securities and Markets Authority updated its interim Markets in Crypto-Assets register on Thursday, July 16, 2026. The update raised the number of authorized crypto-asset service providers, known as CASPs, to 294 and marked the regulator’s second expansion of the register after MiCA’s transitional period expired.
Licensing activity slowed sharply compared with the previous post-deadline update. ESMA added 37 CASPs on July 3, 2026, compared with 14 in the latest revision. That represented a decline of 23 providers, or about 62%, between the two updates.
Ripple Payments Europe, the European payments arm of Ripple, was among the newly registered providers. The update also included Portugal-based Bison Bank, state-owned Croatian lender Hrvatska poštanska banka, German cooperative banks Volksbank Schwarzwald-Donau-Neckar and Raiffeisenbank Auerbach-Freihung, and Liechtenstein-based Kaiser Partner Privatbank.
Their inclusion extended MiCA participation across commercial, state-owned, cooperative and private banking institutions. The broader register already includes BBVA and CaixaBank from Spain, Commerzbank from Germany, CACEIS Bank from France and Standard Chartered Luxembourg.
The available information did not specify which individual MiCA permissions each newly registered institution received. Authorized CASPs may provide regulated crypto services under the European Union’s unified framework, but the exact approved activities were not detailed.
Token Issuer Registrations Remain Flat
The July update produced no change in the number of approved electronic money token issuers or asset-referenced token issuers. Electronic money tokens are designed to maintain a stable value by referencing one official currency, while asset-referenced tokens may reference multiple currencies, commodities or other assets.
No new issuer entered either category during the latest update. Regulatory uptake therefore remained concentrated among service providers rather than companies issuing regulated tokens.
ESMA also added Reversal Investment Group and Kortex to its register of non-compliant crypto businesses following enforcement actions by Italy’s Commissione Nazionale per le Società e la Borsa, or CONSOB. Crypto exchange MEXC was already included on that list.
The latest additions showed regulators expanding the authorized market while continuing to identify businesses operating outside applicable approval requirements.
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Cipollone Warns of Deposit Pressure
European Central Bank Executive Board member Piero Cipollone addressed the effect of digital money on commercial banks during a speech in Rome on Friday, July 17, 2026, before Italy’s Federation of Cooperative Credit Banks.
He warned that consumers could move part of the money held in bank accounts into privately issued stablecoins. Such a shift could reduce retail deposits, which serve as a stable funding source for commercial banks.
Cipollone said digital payments were already reshaping banking and increasing Europe’s dependence on payment infrastructure controlled by companies outside the region. He also said banks were losing payment fees and transaction data to mobile-payment providers.
The ECB official argued that a digital euro could preserve commercial banks’ involvement in payments while maintaining public money as a usable digital payment instrument.
“The digital euro would both preserve the role of public money and ensure banks remain involved in the payments ecosystem while continuing to meet their customers’ needs,” Cipollone said.
His remarks distinguished the proposed digital euro from privately issued stablecoins. The ECB’s planned currency would be structured to retain banks as payment intermediaries rather than redirecting customer balances and activity away from them.
Cipollone did not provide an estimate of how much money could move from bank deposits into stablecoins. He also did not identify a specific level of deposit losses that could create wider financial stress.
Digital Euro Testing Advances
The warning came three days after the ECB selected 36 payment service providers on Tuesday, July 14, 2026, to participate in a digital euro pilot.
The participating group includes banks, fintech companies and payment businesses. The pilot will test how a retail central bank digital currency could operate across the euro area and how financial institutions could support its use.
The pilot does not amount to approval or launch of the digital euro. It is an operational testing phase intended to assess how the currency could function throughout the eurozone before policymakers make a final issuance decision.
Traditional banks are participating in both sides of Europe’s digital-finance transition. Several are obtaining MiCA authorization to provide crypto services, while banks and payment companies are also being positioned to support the digital euro.
Cooperative banks are directly exposed to both developments. German cooperative lenders joined the MiCA register, while Cipollone delivered his stablecoin warning to representatives of Italy’s cooperative banking sector.
FAQ
What does a CASP authorization cover?
It permits a provider to offer approved crypto services under the European Union’s MiCA framework.
Did the ECB approve a digital euro?
No. The ECB selected pilot participants but has not made a final issuance decision.
Why does Cipollone view stablecoins as a banking risk?
Consumers could move funds from bank accounts into stablecoins, reducing retail deposits.
Were new regulated token issuers approved?
No new electronic money token or asset-referenced token issuers were added.
This article has been refined and enhanced by ChatGPT.
