How token issuance works
The issuer deploys a token contract to a network, under a standard such as ERC-20, with a name, a symbol, a number of decimals and rules for supply. Minting then creates units at chosen addresses, and burning destroys them.
A fixed-supply token is minted once. A stablecoin is minted and burned continuously: tokens are issued when the issuer receives money and destroyed when a holder redeems.
The keys that can mint are the most sensitive in the system, and are typically held under multisig or in hardware security modules.
What MiCA asks before a token is offered in the EU
For a crypto-asset other than an asset-referenced token or an e-money token, Article 4 requires the offeror to be a legal person and to draw up, notify and publish a crypto-asset white paper. The white paper is notified to the home authority at least 20 working days before publication, and the authority does not approve it in advance.
Some offers are exempt from the white paper, among them an offer to fewer than 150 persons per member state and one that does not exceed EUR 1,000,000 over 12 months. A retail holder who buys from the offeror may withdraw within 14 calendar days, unless the crypto-asset was already admitted to trading.
Asset-referenced tokens and e-money tokens follow stricter rules, and only their issuer, or a person with its written consent, may offer them.
Token issuance, minting or listing?
- Minting
- The on-chain step that creates units. Issuance also covers the offer to holders and the issuer's obligations.
- Listing
- Admission of an existing token to trading on an exchange. MiCA sets white paper duties for that step too.
- Asset tokenisation
- Issuing a token that represents an existing asset, such as a bond or a share in a property.
Where Token issuance shows up in a platform
Modules that do the work
- Custody & walletsWallets on every major chain, with MPC custody from leading providers or your own keys.
- LedgerThe double-entry book of record behind every balance, fee and transfer.
- Compliance reportingTransaction monitoring, the Travel Rule and regulatory reports, ready for your regulator.
Platforms that need it
Guides that go deeper
Where it is written
The laws and standards this page's facts come from.
General information, not legal advice: what applies to you depends on your services and your market.