# Redemption

Returning stablecoins to the issuer for the reference currency; who may redeem, how fast and at what fee depends on law and terms.

Canonical: https://achivx.org/glossary/redemption/
Updated: 2026-11-01

Redemption is when a holder returns stablecoins to the issuer and receives the reference currency. Rules differ. MiCA requires e-money token issuers to redeem at any time, at par value and without a fee. The GENIUS Act requires clear procedures for timely redemption. Hong Kong expects requests processed within one business day; the UK FCA requires redemption within T+1. Tether's terms allow redemption only for verified customers, subject to minimum amounts and fees.

## What the sources say

| Source | Quote | Link |
|---|---|---|
| MiCA Art 49(4): redemption of e-money tokens | "Upon request by a holder of an e-money token, the issuer of that e-money token shall redeem it, at any time and at par value, by paying in funds, other than electronic money, the monetary value of the e-money token held to the holder of the e-money token." | [publications.europa.eu](https://publications.europa.eu/resource/cellar/01d55833-0660-11ee-b12e-01aa75ed71a1.0006.03/DOC_1) |
| MiCA Art 49(6): no redemption fee | "Without prejudice to Article 46, the redemption of e-money tokens shall not be subject to a fee." | [publications.europa.eu](https://publications.europa.eu/resource/cellar/01d55833-0660-11ee-b12e-01aa75ed71a1.0006.03/DOC_1) |
| GENIUS Act, sec. 4(a)(1)(B): redemption procedures | "establish clear and conspicuous procedures for timely redemption of outstanding payment stablecoins" | [govinfo.gov](https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm) |
| HKMA supervision guideline: timing | "redemption requests should be processed within one (1) business day after the day on which it is received by the licensee." | [hkma.gov.hk](https://www.hkma.gov.hk/media/eng/doc/key-functions/ifc/stablecoin-issuers/Guideline_on_supervision_of_licensed_stablecoin_issuers_eng.pdf) |
| FCA PS26/10: T+1 | "We will still require UK stablecoin issuers to redeem any amount of UK-issued qualifying stablecoin within T+1." | [fca.org.uk](https://www.fca.org.uk/publication/policy/ps26-10.pdf) |
| Tether terms: redemption conditions | "Tether may from time to time make redemptions of Tether Tokens through the Site subject to minimum redemption amounts and other requirements." | [tether.to](https://tether.to/en/legal/) |
| Tether terms: only verified customers may redeem | "In order to cause Tether Tokens to be issued or redeemed by Tether, you must be a verified customer of Tether." | [tether.to](https://tether.to/en/legal/) |
| Tether terms: redemption price less fees | "less fees, where applicable. The Fiat currency payable on redemption will be paid to the bank account in your name designated by you via the process specified by Tether." | [tether.to](https://tether.to/en/legal/) |

## Where the sources differ

The sources differ on fees. MiCA forbids a redemption fee for e-money tokens. Tether's terms say the redemption price is paid "less fees, where applicable".

## Related terms

- [Issuer](/glossary/issuer/)
- [Burn](/glossary/burn/)
- [Peg / depeg](/glossary/peg-depeg/)
- [Reserve / reserve assets](/glossary/reserve-assets/)

## See also

- Explainer: [Can I redeem USDT or USDC with the issuer myself?](https://achivx.com/academy/issuers/can-i-redeem-with-the-issuer.html)
- Review: [revain.org/coins/usdt/](https://revain.org/coins/usdt/)
- Review: [revain.org/coins/usdc/](https://revain.org/coins/usdc/)
- Review: [revain.org/coins/eurc/](https://revain.org/coins/eurc/)

Checked against the sources on 2026-11-01.

## revain.org
- https://revain.org/coins/usdt/
- https://revain.org/coins/usdc/
- https://revain.org/coins/eurc/

## Sources
- https://publications.europa.eu/resource/cellar/01d55833-0660-11ee-b12e-01aa75ed71a1.0006.03/DOC_1
- https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm
- https://www.hkma.gov.hk/media/eng/doc/key-functions/ifc/stablecoin-issuers/Guideline_on_supervision_of_licensed_stablecoin_issuers_eng.pdf
- https://www.fca.org.uk/publication/policy/ps26-10.pdf
- https://tether.to/en/legal/