AllUnity, the joint stablecoin initiative from asset management firm DWS and Deutsche Bank, has received regulatory approval from Germany’s financial watchdog, BaFin.
The German Federal Financial Supervisory Authority has granted AllUnity an E-Money Institution (EMI) license, paving the way for the launch of a euro-backed stablecoin named EURAU. The token will be issued under the EU’s Markets in Crypto-Assets Regulation (MiCA) framework, ensuring full regulatory compliance.
According to the company, EURAU will include institutional-level financial transparency, featuring proof-of-reserves and detailed reporting. The project is also supported by U.S.-based Galaxy Digital and Amsterdam’s Flow Traders, who will provide market liquidity. AllUnity aims to bring a compliant, euro-denominated digital currency into the operations of financial institutions, fintechs, and corporate treasuries.
Europe: A Growing Stablecoin Battleground
This regulatory milestone comes as Europe becomes a critical front in the global competition over stablecoins, especially following the enforcement of MiCA regulations on December 30, 2024.
Tether’s reluctance to align with MiCA has sparked changes in the market. Its flagship USDt token was recently removed from platforms like Binance, Kraken, and Coinbase for users in the European Economic Area, creating space for regulated alternatives to gain traction.
A Regulatory Arms Race Among Stablecoins
Earlier this week, Paxos launched its MiCA-compliant Global Dollar (USDG) in Europe, marking another major player stepping into the compliant stablecoin arena.
Circle’s Euro Coin (EURC), also aligned with MiCA, has seen rising demand in recent months. Both EURC and USDC, Circle’s euro and dollar-pegged stablecoins, are benefiting from their regulatory-first approach.
Despite these developments, Tether’s USDt still dominates the global stablecoin market, with a market capitalization nearing $158 billion—well ahead of USDC’s $62 billion.
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