AllUnity Launches First Fully Regulated Euro Stablecoin in Germany

AllUnity, a joint venture asset manager between DWS, Flow Traders, and Galaxy Digital, has announced that it has received a BaFin license in Germany to issue a MiCA-compliant euro-pegged stablecoin, EURAU. This approval marks a significant milestone as EURAU becomes the first fully regulated euro stablecoin in Germany, adhering to the European Markets in Crypto Assets (MiCA) regulatory framework. The stablecoin is designed to facilitate 24/7 instant cross-border settlements and seamless integration for regulated financial institutions, fintech companies, treasury operations, and enterprise clients throughout Europe and internationally.

On July 1, AllUnity received an e-money institution (EMI) license from the Federal Financial Supervisory Authority (BaFin), allowing the company to issue stablecoin that is fully compliant with Europe’s Markets in Crypto Assets (MiCA) framework. Alexander Hoptner, CEO of AllUnity, highlighted the significance of this achievement, stating that securing the EMI license from BaFin is a monumental step towards building a truly secure, transparent, and compliant digital cross-border payment ecosystem for Europe and global markets.

AllUnity is planning to launch EURAU, which will be 100% collateralized to deliver great transparency through proof of reserves and regulatory reporting. With this euro-pegged stablecoin, EURAU, AllUnity is aiming for seamless cross-border transactions across Europe and beyond, catering to both fintech platforms and established financial institutions. AllUnity is offering a versatile and compatible solution for the evolving digital payments landscape with the EURAU, which is expected to be compatible with enterprise systems and decentralized finance protocols.

The EURAU stablecoin will be 100% collateralized, providing institutional-grade transparency through proof of reserves and comprehensive regulatory reporting. This development is seen as a foundational building block for the future of the European financial and real economy, creating a gateway to Europe and a more efficient financial system. Stefan Hoops, CEO of DWS, emphasized the importance of this development, stating that the EMI license marks an inflection point for the European financial industry. Mike Novogratz, Founder and CEO of Galaxy, expressed confidence that EURAU will allow frictionless, compliant, and transparent value transfer, unlocking real utility for institutions, fintechs, and enterprises across borders.

Flow Traders will contribute to the initiative through its expertise as a leading global liquidity provider and market maker, while Galaxy Digital will help institutions operate in the evolving digital economy. The AllUnity EURAU stablecoin was initially announced in December 2023 and has gained strong momentum following the recent approval of its EMI license and compliance with Europe’s MiCA framework. This development is part of a broader trend among major financial institutions ramping up their digital asset capabilities, driven by evolving European regulations.

AllUnity’s announcement comes at a time when Europe is becoming a hotspot in the global stablecoin race, especially with new MiCA rules coming into effect in December 2024. Tether, the biggest stablecoin in the world, has chosen not to follow these rules, causing its USDT token to be removed from top exchanges for European users. With a MiCA-compliance, support of financial institutions, and a determined focus, AllUnity is poised to succeed with EURAU.

AllUnity is expected to endure a big competition and hurdles in its way of regulating EURAU, like the Tether did during the USTD launch. However, despite all the challenges, USDT emerged to be the dominant market leader with a significant lead over other stablecoins. Now, it is time for the investors to see if EURAU can accomplish the same heights or will it fail to gain such popularity.