EURAU's Cross-Chain Push Aims to Challenge Dollar-Dominated Stablecoins

Deutsche Bank and DWS Group have launched a major expansion of their euro-pegged stablecoin, EURAU, across six major blockchains using Chainlink's Cross-Chain Interoperability Protocol (CCIP). The move, announced on October 31, 2025, aims to position EURAU as a cornerstone of Europe's regulated digital finance ecosystem under the Markets in Crypto-Assets (MiCA) framework. The stablecoin, issued by AllUnity—a joint venture between Deutsche Bank and asset manager DWS—will now operate on Ethereum, Arbitrum, Base, Optimism, Polygon, and Solana, with plans to integrate the Canton Network, a blockchain tailored for institutional applications .

The expansion leverages Chainlink's CCIP to enable secure, zero-slippage transfers of EURAU across disparate blockchain networks. This infrastructure allows smart contracts on one chain to interact with assets on another, ensuring seamless cross-chain operations while maintaining regulatory compliance. Alexander Höptner, CEO of AllUnity, described the integration as a "turning point for European tokenized finance," emphasizing that EURAU's multichain presence will make digital euros as accessible and reliable as traditional bank deposits. Chainlink Labs' Fernando Vazquez called the collaboration a "technical cornerstone" for Europe's tokenization market, highlighting its role in unifying fragmented blockchain networks under a cohesive regulatory framework.

EURAU, fully backed by euro reserves and licensed by Germany's BaFin, adheres to MiCA's stringent requirements for transparency and compliance. Unlike many consumer-focused stablecoins, it is designed for institutional use cases, including B2B payments, on-chain treasury operations, and digital settlements. Deutsche Bank's $1.647 trillion balance sheet and DWS's €1.01 trillion in assets under management provide EURAU with significant institutional credibility. The stablecoin's launch in July 2025 followed AllUnity's acquisition of an e-money institution license, making it one of the first MiCA-compliant euro stablecoins in the European Economic Area.

The expansion comes as Europe seeks to counter the dominance of dollar-backed stablecoins like USDC and USDT. EURAU's multichain strategy aligns with broader efforts to establish a euro-centric digital asset ecosystem, particularly as Tether's USDt faces restrictions in the EEA. With EURAU's deployment, AllUnity aims to facilitate 24/7 cross-border payments and programmable transactions, positioning the stablecoin as a competitor to emerging euro-backed alternatives from firms like Circle and Paxos.

Regulatory challenges loom, however. The overlap between MiCA and the Payment Services Directive (PSD2) could force stablecoin providers to hold dual licenses starting March 2026, increasing compliance costs. Patrick Hansen of Circle has warned that such requirements risk stifling innovation, though AllUnity's pre-MiCA compliance offers a potential blueprint for navigating the regulatory landscape.