Euro Stablecoin By DWS And Deutsche Bank Gets Regulatory Approval

AllUnity, a joint venture between DWS and Deutsche Bank, has received a license from the German Federal Financial Supervisory Authority (BaFin) to issue a regulated euro-pegged stablecoin called EURAU. The license allows AllUnity to operate as an E-Money Institution (EMI) and comply with the Markets in Crypto-Assets Regulation (MiCA) framework. EURAU will feature institutional-grade proof-of-reserves and financial reporting. The stablecoin aims to provide euro-denominated digital assets that can be easily integrated into the workflows of regulated institutions, fintech platforms, and enterprise treasuries. Amsterdam-based Flow Traders will serve as the project's liquidity provider. The development comes as Europe becomes a key battleground in the global stablecoin race, following the full implementation of MiCA on December 30, 2024. Tether, the worldwide stablecoin market leader, has declined to comply with MiCA, leading to its delisting from several major exchanges. Meanwhile, other stablecoin issuers such as Paxos and Circle are launching MiCA-compliant stablecoins in the EU. Circle's stablecoins, including Euro Coin, have benefited from the implementation of MiCA and are now the top euro and US dollar-pegged stablecoins that comply with the regulation. Despite this, Tether remains the market leader with a market cap of under $158 billion.