Stablecoin News – In a landmark development for Europe’s digital finance landscape, AllUnity, a joint venture backed by Deutsche Bank’s asset management arm DWS, Flow Traders, and Galaxy Digital, has secured a license from Germany’s Federal Financial Supervisory Authority (BaFin) to launch EURAU, the continent’s first euro-pegged stablecoin fully compliant with the European Union’s Markets in Crypto-Assets (MiCA) regulation. Announced on July 1, 2025, this approval positions EURAU as a pioneering financial instrument designed to facilitate seamless, round-the-clock cross-border settlements.
EURAU aims to address inefficiencies in traditional financial systems, where cross-border transactions often face delays due to banking hours and intermediary processes. Pegged 1:1 to the euro, EURAU ensures price stability, making it an attractive option for businesses, financial institutions, and fintech platforms seeking reliable digital currency solutions. AllUnity’s stablecoin leverages blockchain technology to enable instant, transparent, and cost-effective transfers, potentially transforming how payments and settlements are conducted across Europe.
The MiCA framework, which came into effect in 2024, provides a robust regulatory structure for crypto-assets in the EU, ensuring consumer protection, financial stability, and market integrity. EURAU’s compliance with MiCA underscores AllUnity’s commitment to regulatory standards, setting it apart from unregulated stablecoins like Tether (USDT). BaFin’s rigorous approval process required AllUnity to demonstrate strong governance, capital reserves, and risk management protocols, ensuring EURAU’s reliability for institutional and retail users alike.
Deutsche Bank’s DWS brings its expertise in asset management, while Flow Traders contributes market-making capabilities, and Galaxy Digital provides deep crypto industry knowledge. This collaboration positions EURAU to bridge traditional finance and decentralized systems. “EURAU is a game-changer for Europe’s digital economy,” said an AllUnity spokesperson. “Our stablecoin offers a trusted, regulated alternative for businesses navigating global markets.”
Market analysts predict EURAU could capture significant market share in Europe’s growing stablecoin sector, which has been dominated by dollar-based assets. By offering a euro-denominated alternative, EURAU aligns with the EU’s push for financial sovereignty and reduced reliance on foreign currencies. Its launch also signals a maturing crypto market, where regulation fosters innovation rather than stifling it.
As EURAU rolls out, AllUnity plans to integrate it with major payment platforms and DeFi ecosystems, expanding its use cases from remittances to tokenized asset trading. With Europe’s digital finance sector poised for growth, EURAU’s launch marks a pivotal moment, blending regulatory compliance with cutting-edge technology to redefine cross-border finance.
