AllUnity, the stablecoin venture backed by Deutsche Bank, DWS, and Galaxy Digital, has secured an e-money license from Germany’s financial regulator BaFin. The license, announced Wednesday, clears the way for AllUnity to issue EURAU, a fully regulated euro-pegged stablecoin.
The new digital currency is designed to comply with the European Union’s Markets in Crypto-Assets Regulation (MiCA), which came into force at the end of 2024.
According to the company, EURAU will include institutional-grade proof-of-reserves and transparent financial reporting to ensure compliance and bolster trust among users.
Amsterdam-based Flow Traders is on board as the project’s liquidity provider, while AllUnity plans to position EURAU as an institutional-friendly stablecoin for regulated banks, enterprise treasuries, and fintech platforms.
Europe Becomes a Stablecoin Battleground
The move comes as the European stablecoin market undergoes rapid transformation driven by MiCA’s regulatory framework.
Since MiCA was implemented, major platforms such as Binance, Kraken, and Coinbase have delisted Tether’s USDt stablecoin for users in the European Economic Area due to Tether’s unwillingness to comply with the new regulations.
This vacuum has opened the door for new euro and dollar stablecoins to gain traction in a market long dominated by USDt.
“MiCA has reshaped the landscape almost overnight,” said a spokesperson for AllUnity.
“We see strong demand for compliant digital assets.”
Compliance Race Heats Up
AllUnity isn’t the only player racing to grab market share in MiCA-compliant stablecoins.
Earlier this week, Paxos announced the launch of its Global Dollar (USDG) stablecoin in the European Union, promising strict adherence to MiCA requirements.
Meanwhile, Circle has reported fast-growing demand for its euro-pegged Euro Coin (EURC), which has gained momentum thanks to its transparent reserves and regulatory credentials.
Although MiCA has created opportunities for fully regulated stablecoins, Tether remains the largest stablecoin issuer globally. According to CoinMarketCap, USDt still boasts a market cap of nearly $158 billion—far ahead of Circle’s USDC, which holds second place at about $62 billion.
Quick Facts
- AllUnity received BaFin approval to issue the euro-pegged EURAU stablecoin.
- EURAU will comply with the EU’s MiCA regulatory framework.
- Europe’s stablecoin market is rapidly evolving as exchanges delist non-compliant tokens.
- Despite new competitors, Tether’s USDt remains the dominant stablecoin worldwide.
