Banking Circle SA has become the first institution in Luxembourg to hold a banking licence, an issuer of e-money tokens (EMT) licence and a crypto-asset service provider (Casp) licence, marking a new stage in the group’s push from cross-border payments into digital asset services.
The latest approval represents more than a regulatory milestone. It gives Banking Circle a broader platform to build business across mainstream finance, tokenised money and crypto-asset services at a time when the boundaries between those markets are starting to blur.
Banking Circle first announced its Luxembourg banking licence on 27 February 2020, laying the groundwork for its expansion in European payments and banking services. It took a further step on 26 August 2024, when it launched EURI, a 1:1 euro-pegged stablecoin issued under its EMT licence. The new Casp licence allows Banking Circle to expand into a wider range of crypto-asset services under Europe’s Markets in Crypto-Assets (Mica) regime. The Casp authorisation takes effect on 15 April 2026.
Taken together, the three licences put Banking Circle in a unique position. Rather than entering digital assets from the outside, it is building on an existing banking and payments business, using its regulated base in Luxembourg to move further into tokenised finance.
From payments to digital assets
Banking Circle is already a sizeable player in financial infrastructure. The group serves more than 650 financial institutions, marketplaces and banks, supports payments in 24 currencies, has access to 10 local clearing schemes and handles more than €1trn in annual payment volumes.
That scale helps explain why the latest licence matters. It gives Banking Circle more room to expand the services it can offer to clients that already rely on it for payments, banking and wider financial infrastructure.
The launch of EURI pointed to the same strategy. The stablecoin gave Banking Circle a regulated way to connect traditional money with digital networks through a euro-backed token. With the Casp licence taking effect on 15 April, the company has more room to build services that sit between conventional banking and the crypto market.
A growing Luxembourg market
The development also highlights Luxembourg’s growing role in regulated digital finance. With Banking Circle’s crypto authorisation, Luxembourg is now home to five active Casps and two EMTs.
Even so, Banking Circle stands apart by bringing together all three licences. That trio gives it a distinctive position in the market and could help it appeal to clients looking for a regulated partner able to operate across payments, banking and digital assets from one base.
Paperjam has requested a comment from Banking Circle.
