Nikolas Sargeant
AllUnity, a collaborative stablecoin venture between Deutsche Bank and asset manager DWS, has secured regulatory approval from Germany's financial watchdog BaFin to launch its euro-pegged digital currency. The E-Money Institution license enables the company to issue EURAU, a MiCA-compliant stablecoin designed specifically for institutional use with institutional-grade proof-of-reserves and comprehensive financial reporting. This approval comes as Deutsche Bank expands its broader crypto strategy, which includes plans to launch cryptocurrency custody services in 2026 through partnerships with Bitpanda and Taurus.
The initiative represents a significant development in Europe's evolving stablecoin landscape, particularly as the region implements stricter regulatory frameworks under the Markets in Crypto-Assets Regulation. AllUnity's partnership extends beyond traditional banking, incorporating US-based Galaxy Digital as a key participant and Amsterdam's Flow Traders as the designated liquidity provider, demonstrating the international scope of this regulatory-compliant digital asset project.
The timing of this approval is particularly strategic, as Europe has become a crucial battleground in the global stablecoin market following MiCA's full implementation in December 2024. Major non-compliant stablecoins like Tether's USDT have faced delisting from prominent European exchanges including Binance, Kraken, and Coinbase, creating opportunities for MiCA-compliant alternatives to capture market share in the European Economic Area.
This development positions AllUnity to compete directly with established MiCA-compliant options like Circle's EURC and USDC, which have already begun capitalizing on the regulatory shift. The EURAU stablecoin aims to provide seamless integration into regulated institutional workflows, fintech platforms, and enterprise treasury operations, potentially reshaping how European financial institutions interact with digital assets in the post-MiCA regulatory environment. Deutsche Bank's entry into the euro stablecoin market reflects a broader trend among European banks, with ING also collaborating with banks and crypto firms on euro stablecoin projects as institutions seek to develop compliant digital assets that align with MiCA regulations.
