Glossary: stablecoin and crypto terms explained
Short, precise definitions. Every term links to the guides that use it.
B
C
D
E
E-money token (EMT)
An e-money token (EMT) is the MiCA term for a crypto-asset that aims to keep a stable value by referencing one official currency, such as the euro or the US dollar. Only an authorised credit institution or electronic money institution may offer one to the public in the EU. Holders have a claim on the issuer, which must redeem the token at par, at any time and without a fee.
EURC
EURC is a euro stablecoin issued by Circle. Each token is backed by euro-denominated reserves and is designed to be redeemable for one euro. In the EU it is issued by Circle Internet Financial Europe SAS, a French electronic money institution, as an e-money token under MiCA, so holders have a claim on the issuer at par value.
G
I
K
M
O
Off-ramp
An off-ramp is a service that converts crypto-assets, such as the stablecoins USDC or EURC, into regular money and pays it to a bank account. In the EU, exchanging crypto-assets for funds is a regulated service under MiCA. What you receive is the amount sold minus the provider's fee, any spread and network costs, paid out by bank transfer such as SEPA.
On-ramp
An on-ramp is a service that turns regular money, such as euros sent by bank transfer or paid by card, into crypto-assets like the stablecoins USDC or EURC. In the EU, exchanging crypto-assets for funds is a regulated service under MiCA, so the provider or its partner must be authorised. The cost is the fee, any spread in the exchange rate and network fees.
S
Self-custody
Self-custody means you hold the private keys that control your crypto-assets, so only you can authorise a transfer. No exchange or custodian holds the assets for you. The trade-off is responsibility: if you lose the keys or your recovery phrase, nobody can reverse transactions or restore access, and if someone else obtains them, they can move your funds.
SEPA
SEPA, the Single Euro Payments Area, is a group of 41 European countries in which cashless payments in euro follow the same standards, so a cross-border euro transfer works like a domestic one. It covers credit transfers, instant credit transfers and direct debits. A standard SEPA transfer reaches the payee's bank by the end of the next business day, and a SEPA Instant transfer within ten seconds.
Slippage
Slippage is the difference between the price you see when you request a trade and the price at which it actually executes. It happens because prices and available liquidity can change between the quote and execution. A maximum slippage setting, also called slippage tolerance, sets how much worse the price may get: if execution would fall outside that range, the trade does not go through.
Stablecoin
A stablecoin is a crypto-asset designed to keep a steady value against a currency, usually the US dollar or the euro. Regulated issuers such as Circle hold cash and short-term government debt equal to every token in circulation, so one USDC can be redeemed for one dollar and one EURC for one euro.
U
USDC
USDC is a US dollar stablecoin issued by Circle. Each token is backed by cash and short-term US government assets and can be redeemed with Circle for one dollar. In the EU, Circle Internet Financial Europe SAS, a French e-money institution, issues USDC as an e-money token under MiCA, which gives holders a claim on the issuer at par.
USDT
USDT, also written USD₮, is a US dollar stablecoin issued by Tether since 2014 and pegged 1:1 to the dollar. Tether says every token is backed by its reserves, which include cash, cash equivalents and other assets, including loans to third parties. USDT does not appear in ESMA's register of MiCA e-money token white papers, and some EEA-licensed platforms have delisted it.