AllUnity, a joint venture between Deutsche Bank and its DWS investment management arm, along with digital asset company Galaxy and market maker Flow Traders, is preparing to launch a euro stablecoin compliant with MiCA standards after obtaining an Electronic Money Institution (EMI) license from the German financial regulatory authority BaFin.
The DWS unit of Deutsche Bank has launched a euro-pegged stablecoin regulated under German law in partnership with Galaxy and Flow Traders.
The newly launched digital currency #EURAU , will be fully backed and will provide transparency at the institutional level. According to AllUnity, this transparency will be achieved through periodic proofs of reserves and regulatory reporting.
EURAU aims to provide seamless integration for regulated financial institutions, fintech companies, corporate treasury management systems (ERP), and businesses, enabling smooth cross-border payments around the clock across Europe and beyond.
This initiative joins a series of euro-linked stablecoin projects, following the implementation of the European Union framework for regulating crypto asset markets (MiCA).
In addition to EURAU, the market also offers the #EURC from Circle, EURCV from Société Générale, and among the dollar-pegged stablecoins, USDCV from Société Générale, and Global Dollar (USDG) backed by Robinhood, with licenses under MiCA.
Alexander Höbner, CEO of AllUnity, emphasized the importance of the EMI license: "This license is not just a regulatory hurdle to overcome, but a foundation for a secure, transparent, and compliant infrastructure for digital payment regulations in European and global markets."
The AllUnity stablecoin initiative aims to provide a compliant alternative for decentralized finance (DeFi) that is regulatory-friendly and suitable for businesses, to the European digital payment infrastructure.