Deutsche Bank-Backed AllUnity Receives BaFin Green Light to Launch Institutional Euro Stablecoin

In a significant leap for Europe’s digital asset ecosystem, AllUnity, a joint venture between Deutsche Bank and asset management titan DWS, has secured regulatory approval to issue a euro-pegged stablecoin, EURAU. The move positions the venture at the forefront of a rapidly evolving market for compliant, institutional-grade digital assets.

Germany’s Federal Financial Supervisory Authority (BaFin) has granted AllUnity an E-Money Institution license, making it one of the first entities approved under the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework. This license enables AllUnity to issue EURAU,  a fully euro-backed stablecoin aimed squarely at serving the needs of banks, fintechs, and corporate treasuries seeking on-chain liquidity in a regulated structure.

EURAU’s institutional design is backed by a powerhouse consortium that includes not only Deutsche Bank and DWS but also strategic partners Galaxy Digital and Flow Traders (FLTLF). The latter will serve as the project’s primary liquidity provider, helping to ensure deep and stable markets for the new digital currency.

“MiCA compliance is not just a regulatory checkbox,  it’s a competitive moat,” said a spokesperson familiar with the project. “With this approval, AllUnity is setting the tone for what institutional-grade digital assets should look like in Europe.”

Unlike many existing euro stablecoins, EURAU will be structured to meet the risk and compliance standards expected by institutional players, a market segment historically underserved in the crypto-native stablecoin space. The stablecoin is expected to facilitate cross-border payments, treasury management, on-chain settlements, and new fintech applications requiring fast, transparent, and euro-denominated transactions.

The launch comes at a pivotal time as Europe pushes for digital financial sovereignty and more stablecoin issuers work to align with MiCA’s 2024 implementation timeline. With the regulatory clarity now in place, AllUnity is likely to attract further adoption from legacy institutions seeking digital euro alternatives to U.S.-centric stablecoins.

As the stablecoin space matures globally, AllUnity’s regulatory milestone may serve as a model for future projects that seek to bridge the worlds of traditional finance and blockchain-based infrastructure, a convergence that continues to redefine the future of money.