ART (Asset-Referenced Token)

Asset-Referenced Tokens are a category of crypto assets defined under the EU's Markets in Crypto-Assets Regulation that aim to maintain a stable value by referencing multiple fiat currencies, commodities, crypto assets, or a combination thereof, distinct from e-money tokens which reference a single fiat currency.

Under MiCA, ARTs face stringent requirements due to potential systemic risks if widely adopted for payments. Issuers must be authorized as credit institutions or obtain specific authorization from national competent authorities, maintain reserve assets covering outstanding token value, ensure asset segregation, publish detailed whitepapers, and comply with capital, governance, and liquidity requirements. ARTs deemed "significant" face enhanced supervision directly by ESMA, including additional capital requirements and interoperability obligations.

Examples of potential ARTs include tokens backed by baskets of fiat currencies or commodities. Facebook's abandoned Diem project would have qualified as a significant ART under MiCA. The regulation aims to prevent stablecoin runs and systemic risks while enabling legitimate use cases. ART issuers must provide redemption rights to holders at any time, distinguishing them from utility tokens or unbacked crypto assets like Bitcoin.