Germany Approves First Regulated Euro Stablecoin EURAU

EURAU stablecoin has become Germany’s first regulated euro-denominated digital currency after a joint venture between Deutsche Bank’s asset management arm DWS, Flow Traders, and Galaxy Digital obtained regulatory approval through an electronic money institution (EMI) license granted by the Federal Financial Supervisory Authority (BaFin) on July 1, 2025. The AllUnity stablecoin will adhere to the European Markets in Crypto Assets (MiCA) regulatory framework and maintain full collateralization, providing institutional-grade transparency through proof of reserves and comprehensive regulatory reporting.

The EURAU stablecoin is designed to facilitate round-the-clock instant cross-border settlements and seamless integration for regulated financial institutions, fintech companies, treasury operations (ERP systems), and enterprise clients throughout Europe and internationally. Stefan Hoops, CEO of DWS, emphasized the importance of this development, stating that “The E-Money Institution (EMI) license marks an inflection point for the European financial industry as it enables the issuance of the first fully regulated EUR stablecoin out of Germany.”

Hoops further elaborated that “DWS and its joint venture partners believe that bringing the euro onto the blockchain represents a foundational building block for the future of the European financial and real economy, creating a gateway to Europe and a more efficient financial system.” Mike Novogratz, Founder and CEO of Galaxy, expressed confidence that EURAU will allow frictionless, compliant, and transparent value transfer, unlocking real utility for institutions, fintechs, and enterprises across borders.

Flow Traders will contribute to the initiative through its expertise as a leading global liquidity provider and market maker, while Galaxy Digital, recognized as a prominent leader in digital assets and blockchain, will help institutions operate in the evolving digital economy as EURAU develops into a fully regulated, euro-backed stablecoin designed for institutional use. The AllUnity EURAU stablecoin was initially announced in December 2023 and has gained strong momentum following the recent approval of its EMI license and compliance with Europe’s MiCA framework.

Stablecoins, which maintain their value by being pegged to fiat currencies such as the euro or the dollar, alongside tokenized deposits—blockchain-based representations of traditional bank deposits—are experiencing increased adoption as financial institutions seek faster and more cost-effective payment solutions. Deutsche Bank, Europe’s largest lender, has demonstrated considerable ambition regarding this initiative and digital assets more broadly.

On June 8, Deutsche Bank announced its exploration of stablecoins as the institution evaluated whether to issue its own digital currency or participate in broader industry initiatives. The bank is also examining the potential for developing tokenized deposits that could enhance transaction settlement efficiency. Beyond Europe, the German financial giant has been pursuing expansion opportunities in Latin America.

Most recently, Deutsche Bank plans to launch a cryptocurrency custody service in 2026, collaborating with Bitpanda’s technology division to develop the platform. This custody initiative is part of a broader trend among major financial institutions ramping up their digital asset capabilities, driven by evolving European regulations and supportive policy developments.