EURAU Launches as First MiCAR-Compliant Euro Stablecoin

EURAU, a euro-backed stablecoin regulated under the European Union’s Markets in Crypto-Assets Regulation (MiCAR), has officially launched in July 2025 under the supervision of Germany’s Federal Financial Supervisory Authority (BaFin). The stablecoin is issued by AllUnity GmbH, a joint venture between DWS, Flow Traders, and Galaxy Digital. Operating as an ERC-20 token on the Ethereum blockchain, EURAU is fully collateralized by reserves held across multiple European banks. This marks the first euro-denominated stablecoin to be issued under MiCAR and licensed as electronic money [1].

The launch of EURAU represents a strategic move to integrate a new asset class into Europe’s digital financial ecosystem. The stablecoin is designed to meet high standards of transparency, security, and regulatory compliance, and is supported by institutional partnerships with infrastructure providers such as BitGo, Fireblocks, and Bullish Europe. Bullish Europe, the first exchange to list EURAU, is licensed by BaFin and plans to expand the token’s availability across the EU [1].

Despite its regulatory significance, the euro-backed stablecoin market remains a relatively small segment. As of July 31, 2025, it accounts for 0.2% of the $272.9 billion global stablecoin market, with a capitalization ranging between $484 million and $587 million. This is far below the U.S. dollar stablecoin market, where Tether’s USDT alone holds $163.7 billion in market cap. However, the euro stablecoin market has seen a nearly 60% increase in value since December 2024, indicating growing interest [1].

The launch of EURAU aligns with broader European efforts to build a competitive stablecoin ecosystem. Jürgen Schaaf, an adviser to the European Central Bank, has stressed the importance of global regulatory coordination to counter the dominance of U.S. dollar-backed stablecoins [1]. EURAU’s compliance with MiCAR and its institutional backing position it as a potential catalyst for future innovation and adoption within the euro zone.

Deploying on the Ethereum network, EURAU continues a trend of preference for the platform in stablecoin issuance. The involvement of major European financial institutions aims to rebuild trust in stablecoins, particularly after past incidents of under-collateralization and governance failures. Deutsche Bank’s participation highlights the increasing integration of traditional financial institutions into the crypto space, potentially setting a precedent for broader participation in regulated stablecoin markets [1].

As MiCAR implementation continues across the EU, EURAU will serve as a test case for the viability and adoption of regulated stablecoins. If successful, it could influence the broader acceptance of euro-backed stablecoins and reduce reliance on U.S. dollar-based alternatives in cross-border transactions and digital payments [1].

Alexander Höptner, CEO of AllUnity, stated, “As the first euro-denominated stablecoin issued under Germany’s regulatory framework and fully aligned with MiCAR, EURAU is designed to meet the highest standards of transparency, compliance, and trust, setting a new benchmark for digital money in Europe.” [1]

The EURAU launch underscores the evolving relationship between traditional finance and digital assets in Europe. With full regulatory oversight and institutional support, it is positioned to contribute to the maturation of the euro stablecoin market and support the EU’s broader goals in digital finance [1].

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Source:

[1] Deutsche Bank-backed EURAU stablecoin launch: Key things to know (https://cointelegraph.com/news/eurau-stablecoin-allunity-launch-key-things-to-know)

[2] Germany's AllUnity Launches BaFin-Regulated Euro ... (https://www.coindesk.com/business/2025/07/31/germany-s-allunity-launches-bafin-regulated-euro-stablecoin-eurau)