AllUnity Secures BaFin EMI Licence to Launch Regulated Euro Stablecoin EURAU

AllUnity, a digital finance joint venture backed by DWS, Flow Traders, and Galaxy, has officially been granted an e-money institution (EMI) licence by Germany’s financial regulator BaFin, allowing it to launch EURAU, a Euro-pegged stablecoin built for institutional use and compliant with EU-wide crypto legislation.

This approval positions AllUnity among the first stablecoin issuers in Europe operating within the new Markets in Crypto-Assets Regulation (MiCAR) framework, which comes into effect fully in 2025. The company says EURAU will be fully backed by euro reserves, with real-time proof-of-reserves, regulatory audits, and robust transparency reporting—all designed to meet strict legal and institutional trust standards.

“This isn’t just a green light—it’s the foundation for a regulated digital payments infrastructure that Europe can rely on,” said AllUnity CEO Alexander Höptner, noting that EURAU is being built for enterprise-grade cross-border settlements.

According to AllUnity, EURAU will be directly integrable into banking systems, enterprise payment rails, and regulated fintech platforms. Its round-the-clock availability will support near-instant settlement across time zones, including weekends and holidays, something traditional euro clearing systems can't consistently deliver.

The licence also reflects BaFin’s growing role in shaping the regulatory environment for digital currencies within the EU. Under MiCAR, only stablecoins issued by licensed entities with full collateralisation and compliance oversight will be allowed to operate legally across EU member states.

In preparation for meeting MiCAR’s ESG and risk standards, AllUnity partnered in February with Crypto Risk Metrics, a firm that provides regulatory-grade risk scoring and monitoring for crypto issuers. The partnership aims to ensure EURAU’s performance remains transparent and in line with both market expectations and BaFin’s supervisory requirements.

AllUnity combines the operational and financial strength of its founding partners:

• DWS, a leading European asset management firm

• Flow Traders, known for its deep liquidity across exchange-traded products and digital assets

• Galaxy, a U.S.-based digital asset platform offering services in tokenisation, custody, trading, and infrastructure

Galaxy, in particular, has deepened its role in digital financial services this year—most notably by providing a $200 million credit facility to MoonPay in March, reflecting its intent to support the broader adoption of blockchain-based finance.

As the MiCAR regulatory landscape tightens, AllUnity's approval may signal a shift in how digital euro projects are structured. Unlike unregulated stablecoins, EURAU is built for full legal clarity, giving banks and licensed fintech firms a compliant path to integrating stablecoin transactions into their existing infrastructure.

The exact launch date for EURAU has not yet been confirmed, but industry insiders expect rollout activity to begin in the second half of 2025, in parallel with MiCAR enforcement milestones.

Also Read: Bitcoin Isn’t the Only Game Anymore — These 4 Cryptos Are Catching Wall Street’s Eye