- AllUnity receives BaFin e-money license for EURAU.
- Fully collateralized, MiCA-compliant with proof-of-reserves.
- Targets EU institutions, fintechs, IoT payments.
A joint venture named AllUnity, formed by Deutsche Bank’s asset manager DWS, market maker Flow Traders, and crypto firm Galaxy, has secured approval from Germany’s financial watchdog, BaFin, to issue a euro-based stablecoin, EURAU, under the EU’s MiCA framework. This marks the first time a euro-denominated token is being launched under German regulation.
What Stage Are We At?
Though discussions began as far back as December 2023, the project has officially crossed a critical milestone with BaFin granting a license as an electronic money institution. After over a year of preparation, AllUnity is now poised to roll out a fully collateralized stablecoin backed 1:1 with euro reserves held in German bank accounts.
Institutional-Grade Transparency and Utility
EURAU will prioritize transparency: it’s 100% collateralized and will offer proof-of-reserves and regulatory reporting to assure users of its peg’s integrity. Its key uses include:
- 24/7 instant settlements across borders
- Integration for regulated banks, fintechs, treasuries, and enterprise clients across Europe
Why It Matters
This development follows the EU’s rollout of MiCA, which encourages issuance of regulated stablecoins. Though dollar-pegged alternatives like EURC and EURCV exist, EURAU marks Germany’s first fully licensed entry, and the first from a consortium blending traditional finance, market making, and crypto expertise.
Alexander Höptner, AllUnity CEO, noted that the BaFin license is foundational in building a “secure, transparent and compliant digital cross‑border payment ecosystem for Europe and global markets.”
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