AllUnity, a joint venture between Deutsche Bank's asset management arm DWS, secures European Union license for stablecoin operation.
AllUnity, a groundbreaking joint venture between Deutsche Bank's asset management arm DWS, Galaxy, and Flow Traders, is poised to revolutionise the European stablecoin market with the imminent launch of its EURAU euro stablecoin. The venture has received regulatory approval from BaFin as an E-Money Institution, marking a significant milestone in the emerging digital asset landscape.
EURAU stands out as the first fully MiCAR-compliant euro stablecoin with BaFin approval, offering a unique advantage in the tightly controlled European digital asset market. This regulatory compliance provides a significant trust and legal assurance advantage, setting EURAU apart from competitors.
One of the key advantages of EURAU is its 100% collateralization with full regulatory transparency. The stablecoin is fully backed by reserves and subject to stringent regulatory reporting, ensuring institutional-grade transparency and security. This makes EURAU highly appealing to financial institutions, fintechs, and enterprise treasuries that require high compliance standards and asset safety.
EURAU is designed for institutional-grade cross-border settlement, aiming to address longstanding pain points of slow and inefficient legacy euro payment systems. The stablecoin targets seamless, real-time, 24/7 euro liquidity for cross-border payments within Europe and beyond, making it highly suitable for B2B clients and integration with Europe's financial infrastructure.
The project's strong institutional consortium, including major players such as DWS, Flow Traders, and Galaxy (backed by Michael Novogratz), lends credibility, capital, and expertise to the stablecoin's development and adoption. The consortium's network and resources are expected to provide a distinct advantage over existing competitors.
EURAU's launch comes at a time when the European stablecoin market is relatively small but growing. The market is currently dominated by dollar stablecoins, with 99% of the market. However, EURAU's unique advantages, coupled with its regulatory approval, position it as a high-quality, trustworthy euro stablecoin well-suited for institutional use and integration within Europe's evolving digital financial ecosystem.
Notable entities such as 21X have already expressed interest in using the EURAU stablecoin. Max Heinzle, CEO of 21X, stated that the EURAU stablecoin will lower the barrier to entry for European banks, brokers, and institutional investors. Alexander Hoptner, CEO of AllUnity, has an extensive network from his background at Börse Stuttgart and Börse Stuttgart Digital, further bolstering the project's potential for success.
As AllUnity prepares for the launch of EURAU, the stablecoin is expected to make waves in the European stablecoin market. Ledger Insights, a renowned publication, will publish an article on AllUnity next week as part of their Ledger Insights Pro offering, shedding more light on the venture and its potential impact.
In contrast, Societe Generale FORGE, a competitor, has a current market capitalization of €41 million, significantly smaller than AllUnity's prospective offering. Circle's EURC, the sector leader in the European stablecoin market, has a market capitalization of €178 million ($210m), but Circle's USDC stablecoin boasts a market capitalization of $61 billion, dwarfing its EURC counterpart.
As AllUnity moves forward with the launch of EURAU, the stablecoin is expected to bring about a new era of frictionless, compliant, and transparent value transfer within the European market, enabling a more efficient and integrated digital financial ecosystem. According to Mike Novogratz, Founder and CEO of Galaxy, EURAU will enable just that.
- AllUnity's EURAU euro stablecoin, with regulatory approval from BaFin as an E-Money Institution, is the first fully MiCAR-compliant euro stablecoin, offering a unique advantage in the European digital asset market due to its regulatory compliance.
- EURAU's 100% collateralization with full regulatory transparency, coupled with stringent regulatory reporting, makes it highly appealing to financial institutions, fintechs, and enterprise treasuries that require high compliance standards and asset safety.
- The project's strong institutional consortium, including Deutsche Bank's asset management arm DWS, Galaxy (backed by Michael Novogratz), and Flow Traders, lends credibility, capital, and expertise to the stablecoin's development and adoption.
- EURAU is designed for institutional-grade cross-border settlement, aiming to address longstanding pain points of slow and inefficient legacy euro payment systems, with a focus on seamless, real-time, 24/7 euro liquidity for cross-border payments within Europe and beyond.
- Notable entities such as 21X have already expressed interest in using the EURAU stablecoin, citing its potential for lowering the barrier to entry for European banks, brokers, and institutional investors, and enabling a more efficient and integrated digital financial ecosystem.
