Deutsche Bank’s DWS, Galaxy, Flow Traders Venture to Introduce German-Regulated Stablecoin

A joint venture between Deutsche Bank’s (DBK) asset management subsidiary DWS, Flow Traders and Galaxy (GLXY) said it will issue Germany’s first regulated, euro-denominated stablecoin after receiving an e-money institution (EMI) license from the Federal Financial Supervisory Authority (BaFin) this week.

The AllUnity EURAU stablecoin, which will comply with Europe’s Markets in Crypto Assets (MiCA) framework, was teased by the companies back in December 2023.

EURAU will be 100% collateralized and deliver institutional-grade transparency through proof of reserves and regulatory reporting, according to a release. The token can be used for 24/7 instant cross-border settlements, seamless integration for regulated financial institutions, fintechs, Treasuries (ERP) and enterprise clients across Europe and beyond, AllUnity said.

The stablecoin joins a growing number of euro-pegged tokens, including those that have popped up since MiCA took effect about a year ago. They include Circle’s (CRCL) EURC and Société Générale’s (GLE) EURCV alongside MiCA-compliant dollar coins such as SocGen's USDCV and the Robinhood (HOOD)-backed Global Dollar USDG.

Speaking about securing an EMI license from BaFin, Alexander Höptner, CEO of AllUnity said in a statement: "This license is not just a regulatory hurdle cleared, it’s a foundational step towards building a truly secure, transparent and compliant digital cross-border payment ecosystem for Europe and global markets."

Read more: Market Cap of Euro Stablecoins Surges to Nearly $500M as EUR/USD Rivals Bitcoin's H1 Gains

CORRECT (July 2, 08:33 UTC): Changes tense in headline.

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