EURAU to Lead MiCA-Compliant Stablecoin Innovation in Europe
A new joint venture named AllUnity, formed by Deutsche Bank’s asset management arm DWS, Flow Traders, and Galaxy Digital, has received regulatory approval from Germany’s BaFin to issue the first MiCA-compliant euro-denominated stablecoin, known as EURAU.
This development marks a major milestone in the evolution of regulated digital finance in Europe, positioning AllUnity at the forefront of institutional-grade crypto adoption.
What Is EURAU?
EURAU is a fully collateralized euro stablecoin, meaning that each token will be backed 1:1 by reserves. The venture promises transparency and security through regular proof-of-reserves and detailed regulatory reporting, aligned with the EU’s Markets in Crypto Assets (MiCA) regulation.
AllUnity said the stablecoin will provide:
- 24/7 cross-border settlements
- Real-time integration for regulated financial institutions, fintechs, treasury systems (ERP), and enterprise clients
- MiCA-level compliance, a regulatory benchmark now enforced across the European Union
Why This Matters for Crypto and Traditional Finance
The approval of EURAU by BaFin—Germany’s respected financial regulator—signals a turning point for crypto infrastructure within the traditional banking sector. Unlike unregulated stablecoins, EURAU will be legally recognized across all EU member states, giving it a unique advantage in mainstream finance.
Alexander Höptner, CEO of AllUnity, emphasized the broader impact:
“This license is not just a regulatory hurdle cleared, it’s a foundational step towards building a truly secure, transparent and compliant digital cross-border payment ecosystem for Europe and global markets.”
MiCA Ushers in a New Stablecoin Landscape
The Markets in Crypto Assets (MiCA) regulation, which came into effect in 2024, is reshaping the European crypto market. It introduces clear legal requirements for stablecoin issuers, including capital backing, reporting, and custody rules.
Several stablecoin projects have already launched under the MiCA framework, including:
- EURC by Circle
- EURCV by Société Générale
- USDCV and USDG, dollar-backed coins also complying with MiCA rules
EURAU, however, will be the first German-regulated euro stablecoin, giving it a home advantage in Europe’s largest economy.
What’s Next for AllUnity and the Euro Stablecoin Market?
AllUnity plans to roll out EURAU to institutional clients, fintech partners, and ERP platforms, aiming for seamless integration with Europe’s financial backbone. Its fully regulated status may also attract global firms looking for compliant settlement tools in the EU.
Moreover, Deutsche Bank’s involvement brings credibility and institutional support that could set EURAU apart from other digital euro tokens.
EURAU Could Become Europe’s Trusted Stablecoin Standard
As crypto regulation tightens and stablecoins enter mainstream finance, EURAU may become the gold standard for euro-based digital assets. Backed by financial giants and governed by one of the strictest regulatory bodies, EURAU is well-positioned to lead the next wave of digital financial innovation in Europe.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.