03.07.2025 05:02

DWS and Deutsche Bank's joint venture, AllUnity, has received crucial regulatory approval. The German Federal Financial Supervisory Authority (BaFin) granted AllUnity an E-Money Institution (EMI) license on Wednesday, paving the way for the launch of their euro-pegged stablecoin, EURAU. This license ensures EURAU's operation will be fully compliant with the Markets in Crypto-Assets Regulation (MiCA) framework.

AllUnity's EURAU stablecoin promises institutional-level transparency, boasting robust proof-of-reserves and detailed financial reporting. Furthermore, the project, which also includes Galaxy Digital (US-based) and Flow Traders (Amsterdam-based) as liquidity provider, aims to seamlessly integrate into the existing operational structures of regulated financial institutions, fintech companies, and corporate treasuries. The initiative intends to provide a secure and reliable euro-denominated digital asset for these entities.

Europe has become a pivotal battleground in the global stablecoin arena, particularly since the full implementation of MiCA on December 30, 2024. This competitive landscape is partly shaped by the market leader, Tether, which has yet to fully comply with MiCA. Consequently, major exchanges like Binance, Kraken, and Coinbase have delisted USDT for users within the European Economic Area.

This regulatory shift has fueled a race among stablecoin issuers to achieve MiCA compliance. Paxos recently launched its MiCA-compliant Global Dollar (USDG) stablecoin in the EU. Meanwhile, Circle's Euro Coin (EURC) has experienced rapid market cap growth following the implementation of MiCA, along with their US dollar-pegged stablecoin, USDC. These developments highlight the significant advantage of regulatory compliance in the European stablecoin market, even as Tether's USDt remains the dominant stablecoin globally, according to data from CoinMarketCap.