Article 54 Investment of funds received in exchange for e-money tokens

Summary What does Article 54 of the MiCA regulation say?

This article sets out specific safeguarding requirements for funds received by issuers of e-money tokens, acting as a supplement to the existing safeguarding obligations under Directive 2009/110/EC (the Electronic Money Directive).

Rather than replacing those baseline rules, it layers additional conditions on top of them, specifying how the funds must be split and managed once received in exchange for e-money tokens.

Important points:

Issuers of e-money tokens must deposit at least 30% of funds received into separate accounts held at credit institutions.
The remaining funds must be invested in highly liquid financial instruments with minimal market, credit, and concentration risk, consistent with the investment rules in Article 38(1) of this Regulation.
Those invested funds must be denominated in the same official currency as the one referenced by the e-money token.

Springlex's summary of the article, a reading aid, not a substitute for the legal text.

Funds received by issuers of e-money tokens in exchange for e-money tokens and safeguarded in accordance with Article 7(1) of Directive 2009/110/EC shall comply with the following:

at least 30 % of the funds received is always deposited in separate accounts in credit institutions;
the remaining funds received are invested in secure, low-risk assets that qualify as highly liquid financial instruments with minimal market risk, credit risk and concentration risk, in accordance with Article 38(1) of this Regulation, and are denominated in the same official currency as the one referenced by the e-money token.

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