AllUnity has secured approval to issue EURAU, the first MiCAR-compliant euro stablecoin, positioning itself at the centre of Europe’s evolving digital currency landscape just as central banks ramp up scrutiny of private digital money.
AllUnity has become the first company to receive approval from Germany’s financial regulator BaFin to issue a fully compliant euro-denominated stablecoin under the EU’s landmark Markets in Crypto-Assets Regulation (MiCAR).
The announcement marks a watershed moment for Europe’s stablecoin ecosystem and comes just days after a new salvo of warnings from central banks about the risks of privately issued digital money.
Launched as a joint venture between DWS, Flow Traders and Galaxy, AllUnity said its stablecoin, EURAU, will be 100% collateralised, subject to full regulatory reporting, and designed to meet institutional-grade standards for cross-border settlement and integration with Europe’s financial infrastructure.
“Securing the EMI licence from BaFin is a monumental achievement for AllUnity and a testament to our dedication to regulatory excellence,” said CEO Alexander Höptner. “It’s a foundational step towards building a truly secure, transparent and compliant digital payment ecosystem for Europe and global markets.”
The company added that EURAU will be geared toward use by financial institutions, fintechs and enterprise treasuries, offering 24/7 euro liquidity for cross-border settlements — a long-standing pain point in legacy systems.
A euro stablecoin born into tension
AllUnity’s approval comes at a time of deepening scrutiny around stablecoins in Europe. Last week, European Central Bank (ECB) President Christine Lagarde issued a stark warning to lawmakers, describing privately issued stablecoins as a threat to monetary policy transmission and financial stability.
Citing Tether specifically, she expressed concern over regulatory opacity and offshore governance, calling the current state of stablecoins “unsuitable as a reliable means of exchange.”
Just days later, the Bank for International Settlements (BIS) released a sweeping critique, concluding that most stablecoins fail the three foundational tests of sound money: singleness, elasticity and integrity. The BIS report warned of a potential return to “free banking,” where multiple private issuers circulate digital currencies of varying reliability — fragmenting the monetary system and undermining public trust.
Against this backdrop, EURAU’s fully regulated status is likely to be seen as a case study in how stablecoins might integrate within, rather than operate outside, the oversight of European authorities.
MiCAR meets the market
AllUnity’s launch also puts MiCAR to the test. With the regulation coming into force earlier this year, policymakers have sought to draw a clear line between compliant and rogue digital assets. EURAU could serve as the EU’s first proof-of-concept: a euro-backed token that meets transparency requirements while still delivering on crypto’s promise of real-time, programmable money.
DWS CEO Stefan Hoops described EURAU as a foundational building block for restoring financial autonomy in the EU, while Galaxy’s Mike Novogratz said the stablecoin would unlock “frictionless, compliant and transparent value transfer” for institutions across borders.
“Stablecoins are a foundational element in the infrastructure driving the convergence of traditional and digital asset markets,” added Flow Traders CEO Mike Kuehnel. “AllUnity’s Euro-denominated stablecoin is built to enable true interoperability and further drive that convergence.”
A quiet response to a loud ECB
While the ECB continues its push for a central bank digital currency (CBDC) through its digital euro initiative, it is also preparing to integrate tokenised finance through two parallel infrastructure pilots: Pontes and Appia. Announced on 30 June, the programmes aim to connect distributed ledger technology (DLT) platforms with the Eurosystem’s TARGET Services, and eventually build a native DLT settlement ecosystem.
Lagarde framed these efforts as essential to “safeguarding Europe’s bank-based financial system,” while the BIS urged governments to develop unified ledgers to compete with the programmable efficiency of stablecoins.
But with the ECB’s pilot phase not expected until late 2026, AllUnity’s EURAU could fill the liquidity gap now, especially for fintechs, neobanks and corporates experimenting with tokenised asset settlement or on-chain treasury operations.
What’s next: coexistence or confrontation?
The key question is whether initiatives like EURAU will be embraced as public-private bridges, or viewed as threats to monetary sovereignty.
MiCAR offers a regulatory framework, but the ECB has yet to clarify how compliant stablecoins might interact with the broader Eurosystem, including future integration into Pontes or Appia.
For now, AllUnity is urging caution to would-be users: the EURAU token has not yet launched, and any currently circulating assets claiming to be EURAU are scams.
Still, the message from Frankfurt is clear: regulated euro stablecoins are no longer theoretical and their success or failure may shape how Europe balances financial innovation with centralised trust.
