AllUnity Secures EMI License for Euro-Backed Stablecoin EURAU

AllUnity, a joint venture backed by Galaxy Digital, has secured an E-Money Institution (EMI) license from BaFin, the German Federal Financial Supervisory Authority. This license paves the way for AllUnity to drive stablecoin growth, particularly with the launch of a Euro-backed stablecoin, EURAU. The announcement was made by Galaxy Digital CEO Mike Novogratz, highlighting that EURAU will be the first BaFin-regulated stablecoin, fully compliant with the EU Markets in Crypto-Assets Regulation (MiCAR) framework.

EURAU is designed for 24/7 instant cross-border settlements and will be 100% collateralized upon release. It aims to deliver institutional-grade transparency through proof-of-reserves and regulatory reporting. The stablecoin is tailored for regulated financial institutions, fintechs, treasuries, and enterprise clients across Europe, addressing the critical need for liquidity in the European digital economy. The EMI license allows AllUnity to set a new standard for utility in regulated environments and accelerate the evolution of the cross-border payments ecosystem.

AllUnity has partnered with leading industry giants, including DWS, Flow Traders, and Galaxy, for the launch of EURAU. The firm bridges traditional finance and digital assets with its institutional-grade infrastructure and real-time settlement capabilities. Alexander Höptner, CEO of AllUnity, expressed pride in securing the EMI license, stating that it is a testament to their dedication to regulatory excellence and innovation.

The EMI license comes at a pivotal time when stablecoins are increasingly being considered reliable for restoring financial autonomy in the EU. Regulated Euro-backed stablecoins are seen as a foundational block for the future of the European financial and real economy. They offer a stable alternative for transactions and investments, protecting against fluctuations in the US dollar. The MiCA regulation, which requires 1:1 reserve backing in EU-regulated banks, ensures transparency and accountability, encouraging the adoption of euro-backed stablecoins.

Financial players, including Paxos and Deutsche Bank, are entering the European market, signaling an increasing level of trust from institutional players. Paxos recently introduced the Global-Dollar (USDG) in the EU, compliant with the MiCA regulations. In May, Ripple’s XRP Ledger (XRPL) added EURØP as its first euro-backed stablecoin, issued by Schuman Financial and fully backed 1:1 by euro held in European banks.

The regulation of stablecoins differs between Europe and the United States, shaped by differing legal frameworks, priorities, and market dynamics. MiCA has influenced the growth of euro-backed stablecoins like EURC, EURS, and EURØP, while the US lacks a comprehensive federal regulation. However, US senators recently voted in favor of the GENIUS Act, a bipartisan bill co-sponsored by Senators Kirsten Gillibrand and Bill Hagerty, aiming to establish the first federal regulatory framework for stablecoins in the US. The legislation has moved to the House for approval and, if successfully passed, will move to the desk of the President.