AllUnity has received regulatory approval from German regulator BaFin as an E-Money Institution, the license needed to launch a stablecoin under the EU’s MiCA regulations. AllUnity is a joint venture between Deutsche Bank’s asset management arm DWS, Galaxy and Flow Traders. The company plans to launch its EURAU euro stablecoin imminently, 18 months after first announcing the initiative.
“This license is not just a regulatory hurdle cleared, it’s a foundational step towards building a truly secure, transparent and compliant digital cross-border payment ecosystem for Europe and global markets,” said AllUnity CEO Alexander Höptner.
The 1:1 backed stablecoin will target fintech, enterprise and institutional use cases including cross border payments and corporate treasury usage.
“AllUnity’s Euro stablecoin, EURAU, will enable frictionless, compliant, and transparent value transfer, unlocking real utility for institutions, fintechs, and enterprises across borders,” said Mike Novogratz, Founder and CEO of Galaxy.
AllUnity will enter a relatively small but growing European stablecoin market.
Euro stablecoin competition
Despite MiCA coming into force for electronic money tokens a year ago, to date the dollar still dominates stablecoins with 99% of the market. Circle’s EURC is the sector leader with a market capitalization of €178 million ($210m), but that contrasts with its $61 billion USDC stablecoin.
AllUnity is not the first euro stablecoin affiliated with a systemically important bank. Societe Generale FORGE issued its EURCV more than two years ago and was amongst the first wave of MiCA approvals. Its current market capitalization is €41 million. In recent months it has announced several new alliances.
However, AllUnity’s joint venture structure may give it distinct advantages over existing competitors. It brings the benefit of a variety of institutions to help promote the stablecoin. On top of that, Höptner has an extensive network from his background at Börse Stuttgart and Börse Stuttgart Digital, one of the first institutional crypto offerings.
One example is he is also Chairman of 21X, the first licensed trading and settlement platform under the EU’s DLT Pilot Regime. Naturally 21X plans to use the EURAU stablecoin.
“AllUnity’s EURAU stablecoin, backed by their robust regulatory approval, is a critical component in our strategy to build an accessible, and trusted trading venue for tokenized assets,” said Max Heinzle, CEO of 21X in a statement. “By offering institutional-grade settlement currencies operating under the MiCA framework, we are lowering the barrier to entry for European banks, brokers, and institutional investors, enabling a truly automated and scalable trading environment for the future of finance.”
We plan to publish an article on AllUnity next week as part of our Ledger Insights Pro offering, following a recent interview with Höptner.
