In a significant development for the European digital currency market, AllUnity, a joint venture between Deutsche Bank’s DWS, Flow Traders, and Galaxy, has received approval from Germany’s financial regulator BaFin to launch EURAU—a fully regulated, euro-denominated stablecoin. This milestone marks Germany’s official entry into the growing stablecoin space, positioning the country as a frontrunner in regulated digital assets under the Markets in Crypto Assets (MiCA) framework.
A Milestone for Germany's Digital Finance Ecosystem
The BaFin license granted to AllUnity is not merely a regulatory green light—it represents a paradigm shift in how traditional finance and blockchain technology are converging in Europe. AllUnity is now officially authorized as an e-money institution (EMI), allowing it to issue EURAU, a euro-pegged stablecoin that will be 100% collateralized and subject to institutional-grade transparency, including proof-of-reserves and stringent regulatory reporting.
According to AllUnity CEO Alexander Höptner, “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.”
What Is EURAU?
EURAU will be the first MiCA-compliant euro stablecoin issued by a German-regulated institution. Designed for seamless integration with financial systems, EURAU is built to support 24/7 cross-border settlements, and will cater to regulated financial institutions, fintech companies, corporate treasuries, and enterprise clients across Europe.
Its full backing with euro reserves ensures that every EURAU token in circulation has a real-world euro equivalent in reserve, ensuring trust, liquidity, and price stability. Moreover, AllUnity has pledged to maintain regular public disclosures of reserve audits, offering a level of transparency that meets institutional expectations.
A Joint Venture with Heavyweights
The creation of AllUnity reflects the growing interest among traditional financial institutions in adopting blockchain-based technologies. Backed by DWS, the asset management arm of Deutsche Bank, alongside Flow Traders and Galaxy, the consortium combines traditional financial expertise with cutting-edge crypto innovation.
Deutsche Bank’s involvement, in particular, signals a broader shift in its strategic priorities. The banking giant is reportedly exploring stablecoins and tokenized deposits as part of its digital transformation strategy. With EURAU, Deutsche Bank gets a front-row seat in shaping the future of Europe’s regulated digital currency landscape.
What Are Stablecoins?
Stablecoins are a class of digital currencies designed to maintain a stable value by being pegged to a reserve asset, most commonly a fiat currency like the U.S. dollar or the euro. Unlike cryptocurrencies such as Bitcoin or Ethereum, whose values can be highly volatile, stablecoins aim to offer the best of both worlds: the efficiency and programmability of digital currencies combined with the price stability of traditional fiat money.
There are several types of stablecoins:
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Fiat-collateralized: Backed 1:1 by fiat reserves (e.g., EURAU, USDC).
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Crypto-collateralized: Backed by cryptocurrencies.
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Algorithmic: Managed by algorithms and smart contracts to control supply and demand.
Stablecoins are widely used in cross-border payments, DeFi applications, digital trading platforms, and increasingly by institutional investors seeking blockchain exposure without volatility risk.
EURAU in the European Stablecoin Landscape
EURAU enters the market at a time when European regulation around crypto is becoming more defined. Since MiCA took effect in 2024, the framework has established clear guidelines for issuing and managing stablecoins within the EU.
EURAU will join existing euro-pegged tokens such as:
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Circle’s EURC
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Société Générale’s EURCV
MiCA-compliant dollar-denominated coins have also emerged, including:
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SocGen’s USDCV
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Robinhood-backed USDG
However, what sets EURAU apart is its status as the first euro stablecoin licensed under Germany’s regulatory regime, giving it a unique position of trust and compliance.
Use Cases and Strategic Vision
AllUnity envisions EURAU as more than just a token—it aims to serve as a foundation for Europe’s digital financial infrastructure. Its use cases include:
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Instant settlement of financial transactions
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Corporate treasury management
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Fintech integrations
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Interbank transfers
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Programmable payments for enterprise clients
Because EURAU is designed for regulatory compliance, it is expected to see swift adoption among institutions hesitant to engage with unregulated or offshore stablecoins.
Why This Matters
Germany’s move to issue a regulated euro stablecoin is a strong signal of confidence in blockchain-based financial instruments. It offers a clear path for other EU nations to follow and provides a robust alternative to U.S.-dominated stablecoins in European markets.
As the eurozone seeks to bolster its digital sovereignty, EURAU could become a strategic tool for reducing reliance on dollar-based stablecoins, ensuring currency stability, transactional efficiency, and regulatory clarity within the EU.
Conclusion
Germany’s approval of EURAU through the AllUnity venture is a watershed moment for the European financial sector. Combining the legacy of Deutsche Bank with the innovation of Galaxy and Flow Traders, EURAU is poised to redefine the digital euro and bring regulated stability to Europe’s crypto economy. As stablecoins continue to mature, Germany’s move sets a new standard for trust, transparency, and compliance in the digital currency world.
