What You Should Know:
- AllUnity, a collaborative venture involving DWS, Flow Traders, and Galaxy, has announced its plan to introduce a MiCA-compliant euro stablecoin named EURAU.
- The partnership has received approval from BaFin as an e-money institution.
- EURAU will be fully collateralized, ensuring institutional-level transparency through proof-of-reserves and adherence to regulatory reporting requirements.
A collaboration between Deutsche Bank’s asset management arm DWS, Flow Traders, and Galaxy has been announced to launch Germany’s inaugural regulated euro-denominated stablecoin, following the acquisition of an e-money institution license from the Federal Financial Supervisory Authority (BaFin) this week.
The EURAU stablecoin will adhere to Europe’s Markets in Crypto Assets (MiCA) framework. Previous hints about the coin were dropped by the companies in December 2023.
According to a release, EURAU will be fully collateralized and will offer institutional-grade transparency through proof of reserves and regulatory reporting. The stablecoin is designed for immediate cross-border settlements and offers seamless integration for regulated financial entities, fintech firms, treasuries, and institutional clients throughout Europe and beyond.
The introduction of this stablecoin adds to various euro-pegged tokens that have emerged since the implementation of MiCA, including Circle’s EURC and Société Générale’s EURCV.
Alexander Höptner, CEO of AllUnity remarked: “Securing this EMI license from BaFin represents not merely a regulatory barrier overcome; it’s a crucial milestone towards establishing a secure, transparent, and compliant digital cross-border payment framework for both Europe and global markets.”
