Asset-referenced Token (ART)
An asset-referenced token (ART) is a cryptographic token used for exchange. However, its value can be pegged to more than 1 fiat, physical asset, cryptocurrency, or a mixture of all three, as seen with PAX Gold, DIAM or the ill-fated Libra Coin from Facebook.
ARTs are stablecoins because they try to peg themselves to the value of a defined basket of assets. For example, Libra tracked the value of a basket of fiats. The value of 1 Libra was determined by the value 50% United States dollar, 18% Euro, 14% Japanese yen, 11% Pound sterling and 7% Singapore dollar.
With the implementation of the MiCA framework, ART issuers and providers will be subject to further obligations, such as:
All ARTs will be supervised by the European Markets and Securities Authority (ESMA) unless deemed “significant, " which will be handed over to the European Banking Authority (EBA).
Only token issuers with a registered office in the EU will be allowed to issue ARTs. This registration includes proper supervision and monitoring of offers to the public of ARTs.
ARTs not pegged to a European currency will be constrained to preserve the EU’s monetary dominance.