AllUnity Secures BaFin Approval for Euro-Based Stablecoin EURAU Under MiCA

AllUnity, a joint venture formed by Deutsche Bank’s asset manager DWS, market maker Flow Traders, and crypto firm Galaxy, has secured approval from Germany’s financial watchdog, BaFin, to issue a euro-based stablecoin, EURAU, under the EU’s MiCA framework. This marks the first time a euro-denominated token is being launched under German regulation. The project has officially crossed a critical milestone with BaFin granting a license as an electronic money institution, after over a year of preparation. AllUnity is now poised to roll out a fully collateralized stablecoin backed 1:1 with euro reserves held in German bank accounts.

EURAU will prioritize transparency, being 100% collateralized and offering proof-of-reserves and regulatory reporting to assure users of its peg’s integrity. Its key uses include 24/7 instant settlements across borders and integration for regulated banks, fintechs, treasuries, and enterprise clients across Europe. This development follows the EU’s rollout of MiCA, which encourages the issuance of regulated stablecoins. Though dollar-pegged alternatives like EURC and EURCV exist, EURAU marks Germany’s first fully licensed entry, and the first from a consortium blending traditional finance, market making, and crypto expertise.

Alexander Höptner, AllUnity CEO, noted that the BaFin license is foundational in building a “secure, transparent and compliant digital cross‑border payment ecosystem for Europe and global markets.” The launch of EURAU comes at a pivotal time as MiCA officially took effect in late 2024, setting strict rules for stablecoin issuers in the European Economic Area. This regulatory framework has led to the delisting of non-compliant tokens, creating a vacuum and an opportunity for fully regulated players like AllUnity. The shift towards regulated stablecoins signals a broader trend in Europe, where financial heavyweights are stepping in to set a new standard for digital money.

With institutional-grade proof-of-reserves, audited financials, and compliance-first positioning, EURAU could emerge as the template for digital money inside the EU. EURAU’s direct connection to Deutsche Bank and DWS gives it a competitive edge, offering trusted European banking infrastructure and regulatory credibility. This positions EURAU to compete with other MiCA-compliant stablecoins. The launch of EURAU is a significant development in the European stablecoin market, highlighting the growing importance of regulatory compliance and institutional backing in the digital asset space.