EURe is a regulated electronic money token (EMT) designed to maintain a 1:1 value peg with the euro (€). Issued by Monerium EMI ehf., an authorized Electronic Money Institution (EMI) in the European Economic Area (EEA), EURe functions as a digital claim on euro-denominated funds held in safeguarded accounts. The token operates on multiple public blockchains and is structured to comply with the European Union's Markets in Crypto-Assets (MiCAR) regulation, providing a compliant on-chain representation of the euro. ^{[1] [2]}​

Overview

EURe was created to bridge traditional finance with blockchain technology, offering a programmable and regulated form of fiat currency for on-chain transactions, e-commerce, and financial settlements. Each token is fully backed by an equivalent amount of euro-denominated assets, which consist of either fiat currency deposited in segregated accounts at regulated credit institutions or investments in high-quality liquid assets (HQLA). The token's total supply is dynamic, expanding when customers deposit euros to mint new tokens and contracting when they redeem tokens for euros. The issuance and redemption processes are facilitated through the Single Euro Payments Area (SEPA) network, connecting conventional bank accounts with Web3 wallets. As an e-money token under MiCAR, EURe holders do not receive interest or other returns based on the duration of holding the token. In the event of the issuer's insolvency, EURe holders have a special priority statutory claim on the safeguarded reserve assets, placing them ahead of other creditors. However, the token is not covered by investor compensation schemes or deposit guarantee schemes, with its security instead relying on the 1:1 asset backing and regulatory safeguards. ^{[1] [3] [4]}

Issuer and Regulatory Framework

EURe is issued by Monerium EMI ehf., a private limited liability company based in Reykjavík, Iceland. Monerium was authorized as an Electronic Money Institution on June 14, 2019, and is supervised by the Financial Supervisory Authority of the Central Bank of Iceland. The company's operations and the issuance of EURe are governed by Icelandic law and European Union regulations. ^{[1] [3]}​

MiCAR Compliance

As an Electronic Money Token (EMT), EURe operates within the legal framework established by Regulation (EU) 2023/1114, also known as the Markets in Crypto-Assets (MiCAR) regulation. This framework dictates key aspects of its operation: ^[1]​

• Holder Rights: Holders have a legal right to redeem EURe for euros at par value at any time. This right is contingent on the holder successfully completing Monerium's Customer Due Diligence (CDD) process.
• Prohibition on Interest: Article 50 of MiCAR prohibits issuers of e-money tokens from offering interest or any other benefits tied to the length of time the tokens are held.
• Asset Safeguarding: Reserve assets must be segregated from the issuer's corporate funds and protected from the claims of other creditors.
• Whitepaper Requirement: The issuer is required to publish a detailed whitepaper compliant with Title IV of MiCAR, outlining the token's features, risks, and the rights of its holders.

Safeguards and Compliance

To comply with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations, all users wishing to issue or redeem EURe directly with Monerium must establish a customer relationship. This involves a full CDD process, including Know Your Customer (KYC) checks and sanctions screening. Monerium has the technical capability and regulatory obligation to freeze EURe tokens associated with blacklisted addresses or prohibited activities. Holders of frozen tokens forfeit their rights, including the right to redemption.

As required by Article 55 of MiCAR, Monerium maintains formal recovery and redemption plans to manage scenarios of financial distress. The recovery plan outlines measures to restore compliance with reserve asset requirements, which may include liquidity fees, daily redemption limits, or a temporary suspension of redemptions. The redemption plan is an operational plan activated by the Central Bank of Iceland if Monerium is deemed unable to fulfill its obligations, ensuring an orderly wind-down and equitable treatment of token holders. Any legal disputes are subject to the jurisdiction of the District Court of Reykjavík. ^[1]​

Technology and Architecture

EURe is a multi-chain asset that operates on public, decentralized blockchains. Monerium does not control these underlying networks and has no privileged technical access. Transaction execution and fees are governed by the respective blockchain's protocol and consensus rules. Due to the immutable nature of blockchain technology, all on-chain transfers of EURe are irreversible, and Monerium cannot recover tokens sent to an incorrect or unintended address. ^[1]​

Multi-Chain Support

EURe was initially launched on Ethereum, Polygon, and Gnosis. Its presence has since expanded to several other networks to increase interoperability. In June 2024, EURe was natively issued on the Noble blockchain, making it available across the Inter-Blockchain Communication (IBC) protocol ecosystem. The token is available on the following blockchains: ^{[5] [6]}​

• Ethereum
• Polygon PoS
• Gnosis Chain
• Arbitrum One
• Linea
• Scroll
• Noble (for the Cosmos ecosystem)
• Osmosis
• Terra

Token Standards

The EURe token followed multiple Ethereum standards to support broader functionality across EVM-compatible networks, including ERC-20 for basic fungible token operations, ERC-2612 for gasless approvals through off-chain digital signatures, and ERC-677, which enabled the transferAndCall function so a token transfer could simultaneously trigger a smart-contract action within the recipient contract. ^[1]

Financial Model

Asset Backing and Reserves

Each EURe token was backed 1:1 by euro-denominated reserve assets, with Monerium maintaining over-collateralization at roughly 102%, meaning €102 in assets were held for every €100 of EURe in circulation. These reserves were segregated from Monerium’s corporate funds and consisted of fiat deposits kept in safeguarded accounts at regulated EU credit institutions, along with high-quality liquid euro-denominated assets managed by a European asset manager. Monerium’s revenue came from interest earned on these safeguarded assets, foreign exchange services, and fees associated with API access. ^[1]​

Issuance and Redemption

EURe’s supply is controlled through a mint-and-burn process tied directly to fiat movements through the SEPA network. When an approved Monerium customer deposits euros into a safeguarded account, Monerium mints an equal amount of EURe tokens and sends them to the customer’s designated blockchain wallet. For redemption, an EURe holder signs a transaction to send their tokens to a designated redemption address, where the tokens are burned and removed from circulation, after which Monerium transfers the corresponding euros back to the holder’s bank account via SEPA. ^[1]