Euro Stablecoin Gets Approval from BaFin under MiCA Regulations in Germany

Euro Stablecoin Gets Approval from BaFin under MiCA Regulations in Germany

In a groundbreaking move for the European financial industry, AllUnity, a joint venture between DWS Group, Flow Traders, and Galaxy Digital, has launched the EURAU stablecoin - Germany's first fully regulated euro-denominated stablecoin.

The EURAU stablecoin, announced in December 2023 and approved by the Federal Financial Supervisory Authority (BaFin) on July 1, 2025, marks a significant milestone as it brings the euro onto the blockchain. This development could potentially lead to a more efficient financial system across Europe.

Compliance with the European Markets in Crypto-Assets Regulation (MiCAR) ensures that EURAU adheres to stringent regulatory standards, a crucial factor in gaining institutional trust and widespread adoption. The stablecoin is 100% collateralized, providing institutional-grade transparency through proof of reserves and comprehensive regulatory reporting.

EURAU is designed to facilitate round-the-clock instant cross-border settlements, addressing a long-standing pain point in legacy financial systems. It offers seamless integration for regulated financial institutions, fintech companies, and enterprise clients across Europe and internationally.

The approval of EURAU represents an inflection point for the European financial industry, with DWS Group, a leading asset manager, Flow Traders, a global market-making firm, and Galaxy, a U.S.-listed crypto-native company, at the forefront of Europe's evolving digital currency landscape.

Flow Traders ensures liquidity and trading infrastructure for EURAU, while DWS Group brings regulatory experience and asset custody depth to AllUnity. Galaxy provides crypto-native innovation, including integrations across DeFi and Web3 environments for EURAU.

EURAU is primarily designed for businesses, financial entities, and regulated fintechs, not for speculative retail activity. Key use cases for EURAU include 24/7 cross-border settlements, corporate treasury operations, fintech rails, tokenization infrastructure, bank integrations, and powering backend rails for neobanks and payment platforms seeking programmable money with European regulatory clearance.

Industry insiders view BaFin's license approval as a landmark for the euro stablecoin ecosystem, signaling a willingness from European regulators to back crypto assets that play along with traditional financial regulation, especially when backed by institutional players. The euro stablecoin sector has been growing, with the launch of MiCA triggering a wave of euro-denominated tokens entering the market in 2024-2025.

Stefan Hoops, CEO of DWS, calls the EMI license an "inflection point" for the region's financial sector, while Mike Kuehnel, CEO of Flow Traders, emphasizes that stablecoins are "a foundational element" of the future financial infrastructure, particularly in creating interoperability between traditional and crypto markets. Galaxy CEO Mike Novogratz sees EURAU's potential to drive compliant, transparent, cross-border value transfer at scale, stating that it's "the beginning of a regulated digital financial system for Europe."

With MiCA enforcement now active, stablecoins used for public-facing payments in the EU must meet specific regulatory requirements, and EURAU is among the first to be positioned as a legally usable asset within that framework. The launch of EURAU makes Germany the first country to have a fully regulated euro stablecoin, a move that could pave the way for similar developments across the continent.

1. The EURAU stablecoin, an euro-denominated stablecoin launched by AllUnity, a joint venture between DWS Group, Flow Traders, and Galaxy Digital, brings the euro onto the blockchain, potentially leading to a more efficient European financial system.
2. EURAU is designed to facilitate instant cross-border settlements, offering seamless integration for regulated financial institutions, fintech companies, and enterprise clients across Europe and internationally.
3. Compliance with the European Markets in Crypto-Assets Regulation (MiCAR) ensures that EURAU adheres to stringent regulatory standards, providing institutional-grade transparency and gaining institutional trust.
4. Galaxy Digital, a U.S.-listed crypto-native company, provides crypto-native innovation for EURAU, including integrations across DeFi and Web3 environments.
5. With the launch of EURAU, Germany becomes the first country to have a fully regulated euro stablecoin, a move that could pave the way for similar developments across the continent.
6. Industry experts view the approval of EURAU as a landmark for the euro stablecoin ecosystem, signaling a willingness from European regulators to back crypto assets that play along with traditional financial regulation, especially when backed by institutional players.

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