German-Regulated EURAU Stablecoin to Launch under Joint Venture
- Launch led by DWS, Galaxy, Flow Traders with Alexander Höptner as CEO.
- First euro-stablecoin regulated by BaFin.
- Aims to enhance the digital asset economy in Europe.
The EURAU stablecoin represents a pivotal development in euro-pegged cryptocurrencies, providing regulatory compliance and fostering financial transparency within the European digital economy.
The collaboration involves DWS, a Deutsche Bank subsidiary, along with Galaxy and Flow Traders. Alexander Höptner is appointed CEO of AllUnity, the entity behind EURAU. They secured a significant e-money institution license from BaFin.
The envisaged partnership between DWS, Flow Traders, and Galaxy is unique. Their market reach and expertise will enable AllUnity to develop a go-to-market strategy for a viable EUR-denominated stablecoin in order to advance the on-chain economy … In the coming period, we will focus on building a strong team of talented crypto, financial markets, technology, and regulation experts to deliver on our mission.
— Alexander Höptner, CEO, AllUnity
The stablecoin’s introduction seeks to enhance on-chain economic activities, aligning with the EU’s MiCA framework. EURAU will offer 100% collateralization and aim for integration within financial institutions and ERP systems, facilitating 24/7 eurozone payments.
The project stands to impact the European market by boosting MiCA-compliant stablecoins. Current euro-stablecoin competitors include Circle’s EURC and Société Générale’s EURCV. Notable is the initiative’s potential role in institutional adoption and improved market liquidity.
Technological advancements, regulatory changes, and expanding cryptocurrency use present beneficial consequences for EURAU’s adoption. Historically, compliant assets have enriched institutional participation, as evidenced by prior euro-backed coins adopting MiCA guidelines. This positions EURAU as integral to European digital and DeFi sectors, leveraging regulatory backing for enhanced trust.
