AllUnity Gets Regulator’s Approval to Issue Euro Stablecoin

AllUnity, the joint venture formed by Deutsche Bank's asset manager DWS, Flow Traders, and Galaxy, received a license from Germany's Federal Financial Supervisory Authority (BaFin) to operate as an electronic money institution and issue EURAU, a euro-denominated stablecoin compliant with Europe's Markets in Crypto Assets framework (MiCA).

EURAU will be 100% collateralized by euro-denominated reserves, ensuring each token maintains full backing. AllUnity committed to institutional-grade transparency through proof-of-reserves and regulatory reporting to BaFin.

The stablecoin supports 24/7 instant settlement of cross-border transactions without reliance on traditional banking hours. EURAU's infrastructure allows seamless integration with regulated financial institutions, fintechs, treasuries and enterprise clients across Europe and beyond. Its digital-native architecture aims to reduce transaction costs and accelerate fund transfers for institutional users.

Alexander Höptner, CEO of AllUnity, said the BaFin license would underpin efforts to modernize digital payments in Europe. He added that the approval would enable the venture to work closely with regulators and institutions to refine its operational model. 

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,

Höptner said.

The venture first announced the EURAU stablecoin in December 2023. BaFin's approval officially designates AllUnity as an electronic money institution under the German Payment Services Supervision Act (ZAG), granting it the authority to issue and redeem EURAU tokens.

EURAU joins a growing list of tokens pegged to the euro since MiCA took effect in June 2024. Existing offerings include Circle's EURC and Société Générale's EURCV, which similarly operate under e-money licenses, as well as dollar-based MiCA-compliant tokens such as SocGen's USDCV and Robinhood's USDG.

The BaFin license positions Germany as a regulatory hub for digital assets in Europe, reflecting established financial firms' adoption of blockchain-based payment solutions. Regulated stablecoins offer traditional banks a compliance-first path to integrating distributed ledger technology into mainstream finance.