Germany Launches EURAU Euro-Backed Stablecoin Under MiCAR Regulations

AllUnity, a Frankfurt-based fintech venture co-founded by Deutsche Bank’s DWS, Flow Traders, and Galaxy Digital, has launched EURAU—the first euro-backed stablecoin in Germany under the Markets in Crypto-Assets Regulation (MiCAR) and licensed as electronic money by BaFin, Germany’s financial regulator [1]. The stablecoin, introduced on July 31, 2025, is fully backed 1:1 by euros in reserves, aligning with the highest standards of transparency and compliance [2].

EURAU is being positioned as a foundational digital asset for cross-border transactions, designed to offer secure, instant, and low-cost transfers for banks, fintechs, and enterprises [4]. The stablecoin is set to be listed on Bullish Europe, a BaFin-regulated exchange, although the platform has yet to receive full MiCA authorization [5]. Additional blockchain networks are expected to support EURAU by late 2025, with early backing from institutions like BitGo, Fireblocks, V-Bank, and Tradevest [5].

The introduction of EURAU marks a pivotal shift in the European digital currency landscape. It reflects the growing momentum for euro-backed stablecoins, which have seen their market capitalization rise nearly 60% since late 2024 [5]. Although they remain a small fraction—0.2%—of the global stablecoin market, the regulatory clarity and institutional credibility of EURAU may help shift the balance away from U.S. dollar-backed alternatives [5].

AllUnity’s CEO, Alexander Höptner, emphasized that EURAU is designed to meet the highest standards of compliance and trust, setting a new benchmark for digital money in Europe [3]. This initiative could foster increased technological integration and regulatory alignment across European financial platforms, potentially enhancing liquidity and trust in the digital asset market [4].

EURAU’s regulatory compliance and institutional backing suggest it could redefine the standards for euro-denominated digital assets, offering a viable, regulated alternative in an evolving digital finance ecosystem [2].

Source:

[1] https://coinmarketcap.com/community/articles/688bf544d0f3561b92a4be46/