AllUnity issues the first euro-pegged stablecoin EURAU under the German legal framework, targeting cross-border payments and corporate treasury management.
AllUnity has officially launched EURAU, the first euro-pegged stablecoin fully compliant with the European Union's Markets in Crypto-Assets (MiCAR) regulations. This joint venture is backed by DWS – the asset management unit of Deutsche Bank, along with Galaxy and Flow Traders, marking a significant step in the institutionalization of stablecoins in Europe.
The company received its Crypto Asset Organization license from the German financial regulator (BaFin) earlier this month, establishing a solid legal foundation for the issuance and management of EURAU. This is a 1:1 collateral-backed stablecoin, specifically designed to serve cross-border payment applications and corporate treasury management.
CEO AllUnity Alexander Höptner emphasizes the importance of the project: “As the first euro-pegged stablecoin issued under Germany's legal framework and fully compliant with MiCAR regulations, EURAU is designed to meet the highest standards of transparency, legal compliance, and trust, setting a new benchmark for digital currency in Europe.”
The main goal of EURAU is to serve fintech companies, businesses, and financial institutions with the need for modern digital payment solutions. The crypto trading firm for institutions, Bullish EU, has become the first entity to implement EURAU in trading pairs with Bitcoin and USDC, with Flow Traders taking on the role of official market maker.
MiCAR-compliant reserve management framework
One of the highlights of EURAU is the reserve management mechanism that strictly adheres to MiCAR regulations. Accordingly, a consortium of banks will manage the collateral reserve fund to avoid excessive dependence on a single organization. The regulations limit the reserve ratio at each bank to between 5% and 15%, or a maximum of 25% for systemically important institutions.
This mechanism is designed to enhance stability and minimize concentration risk, meeting European regulators' expectations for the safety of stablecoins. EURAU will be initially issued on the Ethereum blockchain, with plans to expand to other platforms in the future to increase interoperability and accessibility.
Although AllUnity operates independently as a licensed issuing organization, DWS still plays an important strategic advisory role regarding the collateral reserve portfolio. DWS CEO Stefan Hoops explains: “DWS's involvement in advising AllUnity on the reserve portfolio of EURAU will provide an additional layer of trust for all market participants – from institutions and businesses to individual retail users.”
The AllUnity ecosystem is built with the participation of many reputable technology and finance partners, including BitGo, Metzler Bank, Tradevest Group, DLT Finance, Fireblocks, V-Bank, 21X, Hacken, Softstack, and OAK Security. This diversity reflects the commitment to creating a comprehensive and reliable platform for the issuance and management of stablecoins.
