As distributed ledger technology evolves, a growing range of digital cash models is emerging. From stablecoins (EMTs and ARTs) and tokenised deposits to central bank digital currencies, these innovations aim to bring the efficiency of blockchain to traditional financial transactions.
As MiCAR enters full effect, Luxembourg offers a single, trusted jurisdiction for issuing e-money tokens (EMTs) and asset-reference tokens (ARTs). The CSSF supervises both stablecoin issuers and CASPs – providing one point of contact for firms building digital cash infrastructure in Europe.
What can you do from Luxembourg?
1. Issue and manage stablecoins (EMTs/ARTs) under MiCA supervision
2. Develop tokenised deposit models - digital cash fully backed by deposits held at a regulated credit institution
3. Provide on-chain settlement solutions linking tokenised money to securities and fund transactions
4. Combine CASP and EMI permissions for integrated payment and crypto services under a single supervisory framework
5. Access Europe's financial sector and passport services across all 27 EU member states
Why Luxembourg for digital cash?
> > > Scroll or swipe to see more > > >
1. Proven payments and e-money expertise
Luxembourg has decades of experience supervising global payment and e-money institutions, from PayPal to Alipay and Amazon Payments. That same expertise now underpins its approach to stablecoins and tokenised deposits, giving issuers a regulator who already understands how to connect digital assets with traditional financial rails
2. A single, clear supervisory point
The CSSF acts as Luxembourg’s National Competent Authority for MiCAR, overseeing both EMT/ART issuance and CASP services. Its dedicated digital assets team provides structured pre-application dialogue and practical guidance for firms launching regulated tokens, combining speed with supervisory depth and trusted oversight.
3. Legal certainty across models
Luxembourg law accommodates a spectrum of digital cash structures, from regulated stablecoins to tokenised bank depositsand on-chain settlement tokens. The country’s DLT framework ensures legal recognition of digital-cash transfers, while MiCA supervision guarantees investor and consumer protection.
4. Deep integration with capital markets
Luxembourg’s legal and market infrastructure allow digital cash to interact seamlessly with DLT securities and tokenised funds. With instruments such as the EIB’s digital bonds and Luxembourg’s digital Treasury notes already live, settlement in tokenised money is the next logical step.
What's happening in practice
Getting started
Speak with the CSSF’s Digital Assets and Payments team for early guidance on MiCA, EMT, and tokenised-deposit models. If you already operate under Luxembourg’s payment or e-money licence, the same supervisory channel can oversee your digital-cash activity.
