Market News

Deutsche Bank Partners with DWS to Launch Regulated Euro Stablecoin Initiative

AllUnity, a collaborative effort between Deutsche Bank and DWS, has received regulatory approval from BaFin to issue a new euro-pegged stablecoin named EURAU.

With the granted E-Money Institution (EMI) license, AllUnity aims to ensure compliance under the European Markets in Crypto-Assets Regulation (MiCA).

EURAU will feature full collateralization and regular proof-of-reserves to enhance transparency and foster trust among users.

The stablecoin is designed to facilitate efficient, 24/7 cross-border payments, specifically targeting regulated financial institutions and fintech companies.

This initiative highlights a significant evolution in the acceptance of cryptocurrencies, coinciding with the EU's MiCA implementation.

As interest in euro stablecoins grows, EURAU joins competitors like Circle's EURC and Société Générale's EURCV in the expanding stablecoin market.

Alexander Höptner, CEO of AllUnity, emphasized the EMI license's critical role in establishing a secure digital payment infrastructure.

With the euro stablecoin market cap nearing $500 million, EURAU has the potential to compete with traditional fiat currencies.

Deutsche Bank's innovative approach reflects a commitment to integrating digital assets within mainstream finance while adhering to regulatory standards.

This launch may pave the way for a transformative future in digital transactions across Europe.