Ethereum News Today: EURAU Stablecoin Launches on Ethereum as Regulated Alternative to US Dollar Pegs

EURAU, a new euro-backed stablecoin supported by Deutsche Bank’s DWS, Flow Traders, and Galaxy Digital, has launched on the Ethereum blockchain as an ERC-20 token. The initiative is led by AllUnity, a venture formed by the three firms, which announced the public availability of EURAU on July 31, 2025. Regulated by Germany’s BaFin and compliant with the EU’s Markets in Crypto-Assets Regulation (MiCA), EURAU is positioned as a regulated alternative to US dollar-pegged stablecoins. The stablecoin will expand to additional blockchains by 2025, with plans to enhance its infrastructure [1].

Bullish Europe, a crypto platform and custodian regulated by BaFin, has become the first exchange to list EURAU for trading. Following the receipt of four licenses from BaFin in December 2024, Bullish Europe is preparing for EU-wide expansion under the MiCA framework, although it has not yet secured a MiCA license [1]. BitGo, a major crypto custody firm, is also involved in the EURAU ecosystem, alongside partners such as Metzler Bank, Tradevest Group, and DLT Finance, which will support the token’s broader adoption [1].

Despite this development, euro-backed stablecoins still hold only a minor share of the global stablecoin market. According to CoinGecko, euro stablecoins account for approximately 0.2% of the $272.9 billion global stablecoin market, with a total capitalization estimated between $484 million and $587 million. This pales in comparison to US dollar stablecoins, which dominate the sector with a market cap of $268.6 billion. Tether’s USDT alone has a market cap of $163.7 billion, underscoring the dominance of US dollar-based digital assets [1].

However, the euro stablecoin market has seen a surge in growth in recent months. Data from Crypto.com shows that the market capitalization of euro stablecoins has increased by nearly 60% since December 2024, rising from $367 million to about $587 million. Despite this growth, adoption remains limited, with European officials acknowledging the need for broader acceptance and infrastructure development to compete with US dollar-based alternatives [1].

European Central Bank adviser Jürgen Schaaf has called for global coordination in stablecoin regulation to counter the dominance of the US dollar and address disparities in regulatory approaches between the US and the EU [1]. EURAU’s launch reflects this effort, aiming to introduce a stablecoin that aligns with both regulatory and market demands in Europe.

Source: [1] https://cointelegraph.com/news/eurau-stablecoin-allunity-launch-key-things-to-know