Finst

AllUnity launches Germany's first BaFin-licensed euro stablecoin

The German regulator BaFin has officially granted fintech AllUnity an e-money license.

By Mike Hesp
• 2 min read
AllUnity launches Germany's first BaFin-licensed euro stablecoin

Germany's financial regulator BaFin has officially granted fintech company AllUnity an e-money license. That means the firm (a joint venture of DWS, Galaxy Digital, and Flow Traders) can become the first in Germany to issue a euro-stablecoin that fully complies with the EU's MiCA rules. The stablecoin is named EURAU and is fully pegged to the euro.

With the EURAU launch, AllUnity enters a market in a legal playing field shaped by MiCA (Markets in Crypto-Assets) since the end of 2024.

This regulation requires stablecoin issuers to be transparent, well-backed, and subject to regular audits—and that's exactly what AllUnity is aiming for.

EURAU is designed for business use and targets banks, fintechs, and enterprises only.

The token enables cross-border payments, 24/7, fully regulated and collateralized.

In the first phase EURAU will be 100% backed by cash euro reserves. At a later stage, AllUnity aims to switch to high-quality euro-based assets like government bonds and money market funds. There will also be ongoing Proof-of-Reserves and detailed reporting to regulators to reassure institutional players.

For DWS CEO Stefan Hoops, the BaFin license is a milestone: “Tokenizing the euro on the blockchain opens the door to a more efficient financial system.”

Flow Traders exec Mike Kuehnel sees EURAU as a starting gun: “With BaFin approval, AllUnity is ready to speed up the use of digital assets in Europe.”

With this move, AllUnity positions itself right alongside other MiCA-compliant stablecoins like EURC (Circle) and EURCV (Société Générale). And that’s no small thing: Tether (USDT) still holds a firm grip on the European market, but faces growing pressure. Since MiCA went into effect, USDT and other non-EU-compliant tokens have already disappeared from several major exchanges (like Binance, Kraken, and Coinbase).

What sets AllUnity apart? Full EU compliance, local regulation, and tech integration with European infrastructure. That makes EURAU especially attractive for treasury management, ERP systems, and corporate payment processing.

AllUnity's approval could be the tipping point Europe has been waiting for. With strong partners, legal certainty, and a solid tech foundation, EURAU offers a credible alternative to U.S. stablecoins. The Brussels message is clear: Europe wants a leading role in regulated stablecoins. And with AllUnity, it now has the infrastructure for it.

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