The German financial institutions launch a MiCA-compliant stablecoin to capture the European market.
On July 2, the joint venture AllUnity, formed by banking giant Deutsche Bank and asset management firm DWS, obtained authorization from Germany’s Federal Financial Supervisory Authority (BaFin) to launch a euro-denominated stablecoin.
The German regulator granted AllUnity an Electronic Money Institution (EMI) license, paving the way for the debut of EURAU, a euro-backed stablecoin fully compliant with the Markets in Crypto-Assets Regulation (MiCA) framework.
The project also involves strategic participation from Galaxy Digital, the US-based digital asset firm, while Amsterdam-based Flow Traders will act as liquidity provider to ensure the token’s operational stability.
Key features of EURAU
EURAU will feature a transparent proof-of-reserve system and regular financial reporting. The stablecoin is specifically designed to integrate into the operational flows of regulated institutions, fintech platforms, and corporate treasuries.
AllUnity’s strategy aims to fill the gap in the European stablecoin market by offering a euro-denominated digital asset that meets strict continental regulatory standards.
Europe’s stablecoin race
AllUnity’s announcement comes amid intensifying competition in the European stablecoin market, catalyzed by the full implementation of the MiCA regulation on December 30, 2024.
Earlier this week, Paxos announced the launch of its Global Dollar (USDG), also MiCA-compliant, within the European Union. Additionally, ING, one of Europe’s largest banking groups, is reportedly working on developing its own euro-backed stablecoin.
