Stablecoin EURAU, developed by Deutsche Bank, officially launches operation
In a significant move towards digital financial sovereignty in Europe, AllUnity, a joint venture between Deutsche Bank's asset management arm DWS, Galaxy, Flow Traders, and institutional crypto trading firm Bullish EU, has launched a new euro-backed digital asset - EURAU. This stablecoin is fully compliant with the European Union's Markets in Crypto-Assets Regulation (MiCAR) and is regulated by Germany’s federal financial regulator, BaFin.
EURAU operates on the Ethereum blockchain as an ERC-20 token, representing one of the first fully reserved, MiCAR-compliant euro stablecoins issued in Germany. The stablecoin targets financial institutions, banks, fintechs, and corporate clients, aiming to facilitate low-cost, instant euro transactions within a compliant and transparent infrastructure suitable for regulated entities.
The issuers of EURAU have ensured transparency and regulatory adherence by backing the stablecoin with euro reserves held in European custodian banks, such as Metzler Bank and Tradevest. DWS is actively involved in advising EURAU on its reserve portfolio, while Flow Traders serves as the designated market maker for the stablecoin.
EURAU's launch on the Ethereum blockchain marks the beginning of a broader plan to support other blockchain networks later in 2025. Bullish EU, another BaFin-regulated platform, became the first to use EURAU for bitcoin and USDC trading pairs.
Alexander Höptner, CEO of AllUnity, stated that EURAU is designed to meet the highest standards of transparency, compliance, and trust, setting a new benchmark for digital money in Europe. The joint venture behind EURAU also includes BitGo, Metzler Bank, Tradevest Group, DLT Finance, Fireblocks, V-Bank, 21X, Hacken, Softstack, and OAK Security, forming part of the AllUnity ecosystem.
The launch of EURAU comes with an E-Money Institution license from German regulator BaFin, providing legal certainty and user protection within the EU framework. This regulatory approval is significant as it demonstrates adherence to MiCAR rules designed to bring clarity and security to crypto-assets in Europe. MiCAR regulations prevent over-reliance on single institutions and limit bank holdings to 5% to 15% of reserves, or 25% for systemically important institutions, ensuring a robust and secure system.
With EURAU, Europe takes a step towards challenging the dominance of US dollar-pegged stablecoins in the digital payment ecosystem while ensuring compliance and user trust under MiCAR standards. This move is expected to enhance EU-wide digital payment systems and contribute to the region's digital financial sovereignty.
- The new euro-backed digital asset, EURAU, launched by AllUnity, aims to facilitate low-cost, instant euro transactions for financial institutions, banks, fintechs, and corporate clients.
- The stablecoin, EURAU, is regulated by Germany’s federal financial regulator, BaFin, and is fully compliant with the European Union's Markets in Crypto-Assets Regulation (MiCAR).
- To ensure transparency and regulatory adherence, EURAU is backed by euro reserves held in European custodian banks like Metzler Bank and Tradevest.
- DWS is involved in advising EURAU on its reserve portfolio, while Flow Traders serves as the designated market maker for the stablecoin.
- Despite initially launching on the Ethereum blockchain, EURAU's issuers have plans to support other blockchain networks later in 2025.
- With EURAU's launch, Europe aims to challenge the dominance of US dollar-pegged stablecoins in the digital payment ecosystem while ensuring compliance under MiCAR standards, contributing to the region's digital financial sovereignty.
