AllUnity Launches First Regulated Euro Stablecoin In Germany

AllUnity, a joint venture between asset manager DWS and banking giant Deutsche Bank, has received regulatory approval from Germany's Federal Financial Supervisory Authority (BaFin) to launch EURAU, a fully regulated euro stablecoin. This approval marks a significant milestone in the European financial landscape, as EURAU becomes the first regulated euro-denominated digital currency in Germany. The stablecoin is designed to facilitate round-the-clock instant cross-border settlements and seamless integration for regulated financial institutions, fintech companies, treasury operations, and enterprise clients throughout Europe and internationally.

The EURAU stablecoin adheres to the European Markets in Crypto Assets (MiCA) regulatory framework, ensuring full collateralization and providing institutional-grade transparency through proof of reserves and comprehensive regulatory reporting. This compliance with MiCA is a testament to the joint venture's commitment to regulatory standards and transparency, setting a precedent for other digital assets in the region.

Stefan Hoops, CEO of DWS, highlighted the importance of this development, stating that the E-Money Institution (EMI) license is a pivotal moment for the European financial industry. He emphasized that bringing the euro onto the blockchain represents 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. Mike Novogratz, Founder and CEO of Galaxy, expressed confidence that EURAU will enable frictionless, compliant, and transparent value transfer, unlocking real utility for institutions, fintechs, and enterprises across borders.

Flow Traders, a leading global liquidity provider and market maker, will contribute its expertise to the initiative, while Galaxy Digital, a prominent leader in digital assets and blockchain, will help institutions navigate 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.

The launch of EURAU is part of a broader trend among major financial institutions ramping up their digital asset capabilities. Deutsche Bank, Europe’s largest lender, has demonstrated considerable ambition regarding this initiative and digital assets more broadly. The bank is exploring stablecoins and tokenized deposits to enhance transaction settlement efficiency and is pursuing expansion opportunities in Latin America. Additionally, Deutsche Bank plans to launch a cryptocurrency custody service in 2026, collaborating with Bitpanda’s technology division to develop the platform.

This custody initiative is driven by evolving European regulations and supportive policy developments, reflecting the growing acceptance and integration of digital assets within the traditional financial system. The approval of EURAU by BaFin underscores the regulatory body's commitment to fostering innovation while ensuring compliance and stability in the digital asset space. As the first regulated euro stablecoin in Germany, EURAU sets a new standard for digital currencies, paving the way for further advancements in the European financial landscape.