Germany Approves EURAU First Euro Stablecoin Under MiCA

Germany has made a significant stride in the regulated stablecoin landscape with the approval of EURAU, the first euro stablecoin to receive authorization under the Markets in Crypto-Assets Regulation (MiCA) framework. On July 1, 2025, AllUnity, a joint venture between DWS, Flow Traders, and Galaxy, secured an e-money institution (EMI) license from Germany’s financial regulator BaFin. This approval positions EURAU as a pioneering stablecoin in the European Economic Area, fully compliant with MiCA regulations that came into effect in mid-2024.

EURAU is designed to be 100% collateralized, ensuring that each stablecoin is backed by an equivalent amount of euros held in regulated financial institutions. This structure provides institutional-grade transparency and reduces counterparty risk, aligning with the stringent requirements of MiCA. The stablecoin is intended for use by financial institutions, fintechs, and enterprises, offering 24/7 cross-border settlement capabilities. This feature is particularly valuable for real-time, cross-border payments, integrating seamlessly with financial institutions, corporate treasuries, and fintech platforms.

AllUnity, the issuer of EURAU, is a purpose-built venture backed by heavyweight institutions from both traditional finance and the crypto sector. DWS Group, one of Europe’s largest asset managers, brings regulatory experience and asset custody depth. Flow Traders, a global market-making firm, ensures liquidity and trading infrastructure. Galaxy, a U.S.-listed crypto-native company, provides crypto-native innovation, including integrations across DeFi and Web3 environments. This collaboration was established in late 2023 with the mission to build compliant infrastructure for digital payments in Europe.

The euro stablecoin sector has been growing, with notable competitors including Circle’s EURC, Société Générale’s EURCV, and anchored tokens like Membrane Finance’s EUROe. However, EURAU stands out due to its German regulatory foundation, institutional-grade collateralization model, and the backing of three global finance leaders. The stablecoin’s design focuses on interoperability, regulatory trust, and institutional utility, making it a likely contender for widespread use across European digital finance.

Key use cases for EURAU include 24/7 cross-border settlements, corporate treasury operations, fintech rails, tokenization infrastructure, and bank integrations. With MiCA enforcement now active, stablecoins used for public-facing payments in the EU must meet specific regulatory requirements. EURAU is among the first to be positioned as a legally usable asset within that framework, offering a compliant and transparent solution for cross-border value transfer.

Industry insiders view BaFin’s license approval as a landmark for the euro stablecoin ecosystem. For years, European regulators have approached digital currencies with caution, often viewing stablecoins as vehicles for financial instability or opacity. The approval of EURAU signals a shift towards backing crypto assets that comply with traditional financial regulations, especially when supported by institutional players. Stefan Hoops, CEO of DWS, described the EMI license as an “inflection point” for the region’s financial sector, emphasizing the strategic importance of the euro on the blockchain for financial autonomy in Europe. Mike Kuehnel, CEO of Flow Traders, highlighted stablecoins as a foundational element of future financial infrastructure, creating interoperability between traditional and crypto markets. Galaxy CEO Mike Novogratz pointed to EURAU’s potential to drive compliant, transparent, cross-border value transfer at scale, marking the beginning of a regulated digital financial system for Europe.