AllUnity Receives BaFin License to Launch MiCA-Compliant EURAU Stablecoin

Asset management joint venture AllUnity, backed by DWS, Flow Traders, and Galaxy, has obtained an e-money institution (EMI) license from Germany's Federal Financial Supervisory Authority (BaFin), paving the way for the launch of its MiCA-compliant euro-pegged stablecoin EURAU. The approval positions AllUnity to issue the institutional-grade stablecoin with full transparency through proof of reserves and regular financial reporting.

AllUnity CEO Alexander Hoptner stated: 'The BaFin EMI license represents a significant milestone, reflecting our commitment to regulatory compliance. This goes beyond meeting requirements—it establishes the foundation for creating a secure, transparent digital payment ecosystem serving both European and global markets.'

The EURAU stablecoin will be 100% collateralized, targeting cross-border transactions across Europe and catering to fintech platforms and traditional financial institutions. Designed for interoperability, EURAU aims to integrate seamlessly with enterprise systems and decentralized finance protocols.

The announcement comes as Europe emerges as a key battleground in the stablecoin sector, particularly with the Markets in Crypto-Assets (MiCA) regulation taking effect for stablecoins in December 2024. Unlike Tether's recent non-compliance with MiCA requirements for its USDT token—leading to delistings from major exchanges serving European customers—AllUnity's regulatory-aligned approach positions EURAU for institutional adoption.

While AllUnity faces significant market challenges following Tether's dominant position, industry observers will watch whether EURAU can achieve similar traction in the increasingly competitive stablecoin landscape.