MiCA Crypto Licenses May Shrink EU Firms From 3,000 to Just 400

Stripe’s payments subsidiary Bridge has secured two of the most sought-after regulatory approvals in European crypto: a MiCA crypto-asset service provider authorization and an Electronic Money Institution license, both granted in Luxembourg. The timing is pointed — the licenses landed just days after the EU’s Markets in Crypto-Assets regulation came into full force on July 1, drawing a sharp line between compliant operators and those scrambling to exit the bloc.

Key takeaways

• Bridge holds both a MiCA crypto-asset service provider authorization and an EMI license in Luxembourg, covering all 27 EU member states under a single regulatory regime.
• Businesses on Bridge’s platform can now issue custom euro-backed stablecoins, create virtual named IBANs, and offer euro accounts without establishing separate banking relationships across the EU.
• MiCA’s full enforcement from July 1 has pushed noncompliant stablecoins — including USDT — off major European exchanges like Coinbase, Kraken, and Crypto.com.
• Visa is expanding its partnership with Bridge to bring stablecoin-backed Visa cards to more than 100 countries by end of 2026.
• MiCA compliance costs are reshaping the European market, with estimates suggesting the number of licensed crypto firms could drop from roughly 3,000 to only 300–400.

Bridge Secures MiCA and EMI Licenses in Luxembourg

The dual authorization gives Bridge something most crypto companies in Europe are still chasing: a single regulated framework that is valid across all 27 EU member states. Rather than navigating separate national regulators, Bridge can now operate under one license umbrella anchored in Luxembourg.

The scope of the authorization is substantial. Bridge’s licensing covers capital reserves, custody requirements, and operational safeguards — the full stack of obligations the MiCA framework demands from a crypto-asset service provider. Adding the EMI license on top means the company can also issue electronic money, a critical capability for the euro payment products it is now rolling out.

What this practically unlocks is a regulated foundation for building stablecoin infrastructure at EU scale — without the years of country-by-country licensing negotiations that have long slowed fintech expansion across the bloc.

New Euro Stablecoin and Payment Products Offered by Bridge

With the licenses in place, Bridge is moving quickly to launch products that would previously have required businesses to build their own regulated infrastructure or stitch together multiple banking relationships.

Issuance of custom euro-backed stablecoins

Companies building on Bridge’s platform will be able to issue their own euro-backed stablecoins — branded, custom tokens backed by euro reserves — without managing reserve infrastructure themselves. That opens the door for fintech firms, loyalty programs, and payment apps to deploy stablecoin rails under their own product identity, all within a MiCA-compliant structure.

“A business in the EU can now issue its own euro stablecoin and pair it with named IBANs and named EUR payouts across all 27 member states, on a single integration,” said Mai Leduc Blount, Head of Product at Bridge.

Named IBANs and virtual euro accounts

Alongside stablecoin issuance, Bridge is offering virtual IBANs assigned in customers’ names — a feature that makes euro accounts feel indistinguishable from traditional banking products for end users. Fintech companies can provide cross-border euro accounts through a single API integration rather than establishing separate banking relationships in each EU country.

The practical implications go further. Enterprises can use custom stablecoins to transfer funds between subsidiaries instead of routing through correspondent banking networks. Banks can settle interinstitutional transactions via stablecoin infrastructure rather than conventional interbank messaging systems. These are not marginal efficiency gains — they represent a structural alternative to some of the most friction-heavy parts of European financial infrastructure.

Benefits for businesses and banking alternatives

For businesses that have historically needed to work with multiple local banks across EU markets, Bridge’s product set offers a leaner path. Fintech companies launching on-ramps, off-ramps, rewards systems, or in-app payment products can access both stablecoin issuance and IBAN infrastructure through one compliance relationship rather than several.

Impact of MiCA Framework on European Crypto Markets

Bridge’s licensing milestone arrives in the middle of one of the most significant regulatory restructurings the European crypto industry has ever faced. MiCA’s final enforcement phase took effect on July 1, and its consequences are already visible across the market.

Regulatory enforcement and stablecoin compliance

The MiCA framework now requires regulated crypto platforms to support only compliant stablecoins. Tether’s USDT, the world’s largest stablecoin by market cap, is not among them — Tether chose not to seek MiCA authorization, and as a result, Coinbase, Kraken, and Crypto.com all removed USDT trading for European users. Binance adjusted its EU services to comply with MiCA while maintaining user access to withdrawals and transfers.

The European Securities and Markets Authority has been explicit: crypto firms serving EU clients without MiCA authorization are breaching EU law. ESMA has warned against using “reverse solicitation” workarounds and encouraged geo-blocking to prevent unlicensed access.

Market shifts due to MiCA implementation

The compliance costs attached to MiCA are reshaping the industry’s structure in ways that go beyond stablecoin listings. Lawyers advising the sector estimate the number of registered crypto asset service providers in Europe could fall from roughly 3,000 to between 300 and 400 licensed firms — a dramatic consolidation that favors well-resourced companies with the legal and compliance infrastructure to meet MiCA’s demands.

That dynamic explains why Bridge’s licensing matters strategically, not just operationally. Stripe acquired Bridge to build regulated payment infrastructure across crypto and traditional finance. Locking in MiCA and EMI authorizations early positions Bridge as a foundational layer for the compliant euro stablecoin ecosystem that larger platforms, banks, and enterprises will need as the rules harden. Combined with Visa’s planned expansion of stablecoin-backed Visa cards to more than 100 countries by the end of 2026 through its Bridge partnership, the company is building toward a global regulated payments stack — with the EU as a critical anchor.

The harder question facing the market is whether MiCA’s compliance barrier, while creating order, might also slow the innovation it was partly designed to protect. Startups that cannot afford the capital requirements to obtain and maintain a MiCA license face a narrowing window — and some are already looking at Dubai and other jurisdictions as alternatives. For those that clear the bar, the prize is real: a unified regulatory passport covering 450 million potential customers, with compliant stablecoin rails that the market is only beginning to build out.

FAQ

What licenses has Stripe’s Bridge secured to operate in the EU?

Bridge secured both a Markets in Crypto-Assets (MiCA) crypto-asset service provider authorization and an Electronic Money Institution (EMI) license in Luxembourg, giving it a regulated framework valid across all 27 EU member states.

What new services can businesses access through Bridge’s platform under these licenses?

Businesses can issue custom euro-backed stablecoins, create virtual named IBANs, and offer euro accounts without needing separate banking relationships in each EU country — all through a single integration.

How does the EU’s MiCA framework affect crypto platforms regarding stablecoins?

From July 1, regulated crypto platforms in the EU are required to support only MiCA-compliant stablecoins. Noncompliant tokens like USDT have been removed from major European exchanges including Coinbase, Kraken, and Crypto.com after Tether chose not to seek MiCA authorization.

What is the significance of Visa’s partnership expansion with Bridge?

Visa is expanding its partnership with Bridge to roll out stablecoin-backed Visa cards to more than 100 countries globally by the end of 2026, extending Bridge’s regulated payments infrastructure well beyond the European Union.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.