AllUnity launches EURAU: The first regulated Euro stablecoin in Germany!

AllUnity launches EURAU: The first regulated Euro stablecoin in Germany!

AllUnity received approval as an electronic money institution (EMI) from BaFin on July 1, 2025 and plans to launch a new Euro stablecoin called EURAU. This move marks a significant advancement in the field of regulated digital currencies in Europe, especially as EURAU is considered the first fully MiCAR-compliant Euro stablecoin in Germany. AllUnity is a joint venture consisting of established financial players DWS (Deutsche Bank), Flow Traders and Galaxy.

The EURAU will be fully collateralized by deposits and later by high-quality assets in the Eurozone. AllUnity aims to issue a Euro stablecoin that meets the requirements of the new EU regulation MiCAR. This regulation came into force on December 30, 2024 and provides a uniform legal framework for stablecoins in the European Economic Area. On average, the market for Euro stablecoins is still small compared to the faster-growing USD stablecoins. Current competitors in the market include Circle's EURC and Société Générale's EUR CoinVertible (EURCV).

Strategic partnerships and liquidity

To support the launch of the EURAU, AllUnity is working closely with Flow Traders, who will act as liquidity providers. DWS and Deutsche Bank will contribute financial infrastructure and institutional trust, while Galaxy Digital drives the digital asset adoption strategy for the EURAU. These partnerships are crucial to promote the acceptance of the stablecoin in the market and to ensure the necessary technology.

By using EURAU, cross-border payments should be made possible immediately and around the clock. This could represent a sea change in treasury operations, international settlement and B2B transactions by eliminating delays in traditional payments and enabling timely exchange of Euro funds worldwide.

Regulatory challenges and future prospects

AllUnity's initiative comes at a time when leading competitors such as Tether are being delisted due to non-compliance with regulatory standards. AllUnity CEO Alexander Höptner highlights the importance of the EMI license to establish a digital payment system in Europe. Nevertheless, banks and central banks are skeptical about the new payment system because it works without their control.

While the EU MiCAR regulation may place higher hurdles for stablecoins than the US-passed Genius Act, which encourages the issuance of their own stablecoins by large companies, AllUnity is positioning itself as a regulated Euro stablecoin issuer to meet the increasing demand for liquidity in the European digital economy. AllUnity aims to make EURAU the market leader in Euro stablecoins and could thereby create a model for regulated digital currencies in the region.