- AllUnity launched EURAU, a new euro-backed stablecoin that follows the European Union’s crypto regulations.
- EURAU aims to support businesses with cross-border payments and treasury management, starting on the Ethereum network.
- The project is supported by DWS (part of Deutsche Bank), Galaxy, and Flow Traders, and operates under a license from German regulator BaFin.
- Bullish EU was the first firm to trade EURAU in Bitcoin and USDC pairs, with Flow Traders as the market maker.
- Reserve management is split across several banks, with oversight from institutions like BitGo, Metzler Bank, and DWS for transparency and compliance.
AllUnity has introduced EURAU, a stablecoin tied 1:1 to the euro, which meets the requirements set by the European Union’s Markets in Crypto Assets Regulation (MiCAR). The release comes after the company secured an E-Money Institution license from Germany’s financial authority, BaFin, earlier this month. EURAU is designed for cross-border payments and for companies looking to manage their finances using digital money.
The stablecoin is built to maintain equal value with the euro, targeting corporate uses and financial technology firms. Bullish EU, a trading company, became the first to use EURAU for trading pairs with bitcoin and USDC (a popular U.S. dollar stablecoin), with Flow Traders acting as the market maker.
“As the first euro-denominated stablecoin issued under Germany’s regulatory framework and fully aligned with MiCAR, EURAU is designed to meet the highest standards of transparency, compliance, and trust, setting a new benchmark for digital money in Europe,” said Alexander Höptner, CEO of AllUnity.
To comply with MiCAR rules, a group of banks will manage the assets backing EURAU, limiting exposure to any single institution. MiCAR states that no more than 5% to 15% of reserves can be held at one bank, or up to 25% for banks seen as systemically important. This rule aims to reduce risk and promote stability. The stablecoin will first operate on the Ethereum blockchain, with plans to work on other blockchains in the future.
DWS, Deutsche Bank’s asset management division, advises on managing EURAU’s reserves. “While AllUnity operates independently as the regulated issuer, DWS is actively involved in advising AllUnity on EURAU’s reserve portfolio, which should bring an added layer of confidence and trust for all market participants, from institutions and corporates to individual retail users,” said Stefan Hoops, CEO of DWS.
In addition to the founding firms, other companies involved in the AllUnity ecosystem include BitGo, Metzler Bank, Tradevest Group, DLT Finance, Fireblocks, V-Bank, 21X, Hacken, Softstack, and OAK Security.
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